Global merger and acquisition activity topped $1 trillion in the second quarter of 2021, with the U.S alone topping $500 billion. This was the third quarter in a row that this happened globally and in the U.S.
The second quarter started strong with four of the five largest deals announced in the month of April.
Here is a look at the five largest U.S. M&A deals from the second quarter and how they have performed.
1. Canadian National Railway CNI announced a $33.7 billion acquisition of Kansas City Southern KSU on April 20. The deal was recently rejected by a U.S. rail regulator and has faced antitrust concerns from the start. The acquisition would create one of the largest railway companies in North America. The combined company would also create the first direct railway linking Canada, the U.S. and Mexico.
CNI shares are up around 7% since the deal announcement and KSU shares are now down around 2% since the news that the deal will likely not be approved.
Shares for CNI are currently at $123.32; KSU, $292.42.
2. Thermo Fisher Scientific Inc. TMO announced on April 15 it would acquire PPD Inc PPD for $21.05 billion. PPD is a leader in clinical trials and laboratory services.
Thermo Fisher shares are up around 12% since announcing the deal. PPD shares trade at $46.73, under the $47.50 buyout price.
3. Realty Income Corp O, a leading REIT, announced the acquisition of VEREIT Inc VER on April 29. The deal values VEREIT at $17.27 billion. The combined company will have an enterprise value of around $50 billion after the merger. As part of the acquisition, VEREIT shareholders will receive 0.705 shares of Realty Income Corp. for every share of VEREIT they own. After the deal is closed, the combined company will spin-off all office properties into a new REIT.
Realty Income shares are up around 5% since the acquisition was announced, and are at $72.26.
4. Microsoft Corporation MSFT announced a $17.26 billion acquisition of Nuance Communication Inc. NUAN on April 12. Nuance is a leader in artificial intelligence solutions and is the company that helped power Apple Inc’s AAPL Siri. The deal includes a purchase price of $56 per share for NUAN shareholders. The acquisition is the largest for Microsoft since acquiring LinkedIn for $26 billion. The acquisition will grow Microsoft’s exposure to the healthcare sector.
Microsoft shares are up 11% since the deal was announced at around $301.27.
5. Soaring Eagle Acquisition Corp SRNG announced a $16.70 acquisition of Ginkgo Bioworks via a SPAC merger. Ginkgo Bioworks is a leader in the cell programming market. The company works with partners across several sectors including pharma and biotech, industrials and environment, food and agriculture and consumer and technology. Ginkgo Bioworks has collaborated on imRNA vaccines, animal-free protein and renewable plastics.
Partners for Ginkgo include Moderna Inc MRNA, Roche, Cargill, Bayer, Thermo Fisher Scientific, Berkeley Lights Inc BLI, Cronos Group Inc CRON and Pacific Biosciences of California Inc PACB.
Shares of SRNG are trading flat since announcing the merger on May 11. They are currently at $9.97.
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