Merger Mondays Are Back

Jon Markman

Tech stocks are spiking a big 1.7% higher this morning on a bunch of mergers, and problems with mergers. It’s stuff of the old days of great bull markets. It’s a Merger Monday.

Warren Buffet’s Berkshire Hathaway is buying Dominion Energy ((D) -Get Report) in a $10 billion deal. The merger will give Berkshire control over 18% of the interstate gas transmission business in the United States, according to a report at CNBC.

Uber Technologies (UBER) announced it is buying Postmates, a rival logistics business, for $2.65 billion. The deal comes after Uber managers failed to arrive at a merger arrangement in June with Grubhub.

And an $11.5 billion deal between Thermo Fisher Scientific ((TMO) -Get Report) and Qiagen ((QGEN) -Get Report) may be jeopardy because top Qiagen shareholders are balking at the terms. The deal was announced in March, before demand for Qiagen’s covid-19 testing supplies surged.

Meanwhile, the Food and Drug Administration has approved emergency use of a new covid-19 rapid test from Beckton Dickinson ((BDX) -Get Report). The test is part of the DD Veritor PLUS system capable of returning results in as little as 15 minutes.

Stock market sentiment can change quickly. Bearish investors have been holding out for months that the current market is devoid of value because Warren Buffet has kept his powder dry. The sage of Omaha even sold his huge stakes in all of the major airlines.

Now he’s back, and bears are freaking out.

Comments (1)
No. 1-1

I am interested to see how the whole Uber/Postmates thing plays out