What do you need to know about M&A activity during the coronavirus pandemic if you're an investor?
Charles Schwab and TD Ameritrade get the green light from the Justice Department.
The deal received clearance for Schwab's acquisition of TD Ameritrade from the Justice Department's antitrust division.
The two companies now expect the acquisition to close in the second half. The transaction calls for Schwab to pay out 1.0837 shares for each share of TD Ameritrade.
And, on the flip side, what about deals like LVMH and Tiffany's?
LVMH and Tiffany's, who were in the middle of a deal for LVMH to purchase Tiffany's, may be struggling to cross the finish line due to the coronavirus pandemic.
According to reports, LVMH is worried that the economic crisis triggered by the coronavirus pandemic calls into question Tiffany’s ability to cover its debt covenants, knowledgeable sources told Women's Wear Daily.
"I would imagine it is normal that LVMH internally discusses the proposed Tiffany acquisition -- given the size of the deal, the Covid-19 situation and the recent social unrest in the U.S.,” Luca Solca, an analyst at Sanford Bernstein told Bloomberg. “Having said that, the Tiffany takeover would provide a unique strategic opportunity to LVMH, boosting its position in branded jewelry.”
With these two deals, and others, how should investors approach any M&A activity while we still deal with a pandemic?
Jim Cramer said that he's looking at oil to see if there are any deals there, but that the Justice Department seems to be eager to get deals done.
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