Many on Wall Street are predicting a slow down in deal activity for 2019, but the deal flow in the early going has been strong.
Luxoft Holding Inc. (LXFT) - Get Reportwill be bought out by (DXC) - Get Report Technology Co., a software deal that values Luxoft at almost 100% over its Friday closing price. Bristol-Meyers Squibb Co. (BMY) - Get Report last week announced it was buying Celgene Corp. (CELG) - Get Report for $74 billion, while Eli Lilly & Co. (LLY) - Get Report said Monday it will buy Loxo Oncology Inc. (LOXO) - Get Report for $8 billion.
$82 billion worth of all of that deal activity is happening in a non-cyclical business; healthcare, which makes sense in what will likely be a slowing economic environment in 2019 and 2020.
See where else there could be buyout targets here.
Elsewhere, General Electric (GE) - Get Report could fetch $40 billion for its aircraft leasing business from Apollo Private Equity. This would be either a tiny premium over the implied market value of the business, or a 0% premium, reports, RealMoney's Kevin Curran. And while the stock was rising on the news, GE won't be using the cash for new growth businesses soon. It'll focus on paying down liabilities, which are aplenty for the struggling conglomerate.
What did you miss?
U.S. stocks rallied Monday, as trade talks between the U.S. and China indicate the two sides have the desire to work out a trade deal. All three major indices were solidly in the green.
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