Nov 25, 2019

Pre-Thanksgiving Merger Monday sees over $60 billion in announced deals

Dan Primack, author of Pro Rata

Illustration: Sarah Grillo/Axios

It's been a while since we've had a full-fledged Merger Monday, but today we've seen over $60 billion in announced deals.

Why it matters: This isn't about a macro economic shift. It's about bankers and boards wanting to enjoy their Thanksgiving breaks, without constant cell phone pings.

Charles Schwab confirmed it will buy TD Ameritrade for $26 billion in stock.

  • This creates a discount brokerage with over $5 trillion in AUM, assuming it can pass regulatory muster.

LVMH confirmed it will buy Tiffany & Co. for $16.2 billion (not including assumed debt), or $135 per share.

  • The deal ends Tiffany's 182-year run as an independent company, and comes as the U.S.-China trade war has taken a painful toll.

Viagogo agreed to buy StubHub from eBay for $4.05 billion in cash.

  • Viagogo founder and CEO Eric Baker also co-founded StubHub, and now gets to manage both ticket resale marketplaces under the same umbrella. It also represents a whiff for PE-backed Vivid Seats, which for months had seemed to be the favorite.
  • Baker tells Axios that VC-backed Viagogo is profitable, and that the deal was financed through a combination of cash on hand, debt underwritten by JPMorgan, and new equity funding from existing backers Bessemer Venture Partners and Madrone Venture Group.

Novartis will buy The Medicines Co. for $9.7 billion in cash.

  • This is a pricey bet on a cholesterol-fighting drug that's being prepped for an FDA approval filing that should come within the month. A similar submission for Europe is expected in Q1.

Mitsubishi Corp. agreed to buy Dutch utility Eneco for €4.1 billion, beating out KKR and Royal Dutch Shell.

  • It's a major loss for Shell, which has said it wants to buy its way into becoming a power generation leader.

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