Flurry of takeover activity as deal activity levels bounce back

Flurry of takeover activity as deal activity levels bounce back

As we approach the final stretch of 2020,  Market Tracker’s preliminary data suggests that following a particularly slow first half of the year, an increase in deal activity, as reported in our Q3 2020 update, has continued through October and into November.

The first 2 weeks of November have been particularly busy, with five firm offers and seven possible offers already announced. This includes what is likely to end up as the largest takeover transaction of 2020 so far, a joint £7.2 bn offer for FTSE 100 RSA Insurance Group by Canadian insurers, Intact Financial Corporation, and Danish insurers, Tryg A/S. Should a firm offer be announced, the deal value will represent more than double that of GardaWorld’s £3bn hostile offer for FTSE 250 security specialists G4S, currently the highest transaction by value in 2020 to date. The offer would also be larger than Takeaway.com N.V’s £6.25 bn offer for Just Eat plc, which was the biggest firm offer of 2019.

The offer, which sees Tryg contributing £4.2bn, and Intact £3bn, is subject to several pre-conditions, including due diligence and approval by the board of RSA. While a definitive recommendation is yet to be made, RSA’s board have indicated that they would be minded to recommend the proposal. It is intended, should the offer go through, that Intact would retain RSA’s Canadian, UK and international operations and obligations, with Tryg retaining RSA’s Swedish and Norwegian operations and both insurers co-owning RSA’s businesses in Denmark. The announcement saw RSA’s share price rocket, closing 46% higher at 670 pence per share on 5 No

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Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.