Monday could start out as a fruitful and exciting day. Futures on the S&P 500 Index and other major indices were pointing upward, and M&A Monday had an early return over the weekend.
Buyout moves dominated headlines over the weekend, with Genworth Financial Inc (NYSE:GNW), Rockwell Collins, Inc. (NYSE:COL) and TD Ameritrade Holding Corp. (NASDAQ:AMTD) making big splashes Saturday and Sunday.
Here’s what you should know as Monday’s action starts getting into gear.
Genworth Financial Inc (GNW)
China Oceanwide Holdings Ltd revealed over the weekend that it has a deal in place to buy Genworth Financial.
The investment holding company is shelling out $2.7 billion for the mortgage insurance provider. Genworth Financial has struggled due to low interest rates and rising costs.
The deal values Genworth Financial at $5.43 per share and will be covered by an investment platform provided by China Oceanwide. The figure marks a mere 4.2% premium compared to Friday’s closing price of $5.21, however, which is likely why GNW shares aren’t exploding this morning.
The agreement also will help Genworth net $600 million in 2018 to address the company’s debt, in addition to a $525 million cash injection to boost the company’s life insurance business.
“Genworth is an established leader in both mortgage insurance and long-term care insurance, which are markets that present significant long-term growth opportunities,” China Oceanwide Chairman Lu Zhiqiang said in a statement.
Despite its financial issues, GNW shares are up about 40% year-to-date, though the stock is actually off 1% in Monday’s early trade.
TD Ameritrade Holding Corp. (AMTD)
The companies will buy Scottrade for $4 billion, $2.7 billion of which will cover its brokerage operations in cash and stock. Scottrade allows customers to trade online, offering its products to 1.5 million current users. The other $1.3 billion will buy Scottrade’s banking operations.
The move comes at a time when wealth managers in the U.S. are reducing fees as a number of tech-heavier services are coming to the table.
The move was rumored over the weekend, but was officially announced this morning.
AMTD stock is up slightly in response.
Rockwell Collins, Inc. (COL)
Rockwell Collins announced that it has completed the purchase of a major aircraft interior maker, and COL shares are down in response.
Rockwell will buy B/E Aerospace Inc (NASDAQ:BEAV) and all its assets for $6.4 billion (including assuming $1.9 billion in debt) to boost its own aircraft component offerings.
The companies agreed on a deal that values B/E Aerospace at $62 per share — a 22.5% premium to Friday’s closing share price.
The move, which has yet to be approved by regulators, would mark another step forward in the aerospace engineering industry’s consolidation.
Rockwell Collins CEO Kelly Ortberg noted B/E’s positive relationship with airlines and said Rockwell is now both stronger and can sell its products to a wider market as a result of the acquisition.
COL shares are off 3% this morning, which will add to a 9% year-to-date deficit.