Algokid

M & A ARBRITRAGE. OPPORTUNITY - LOBLAWS/SHOPPER DRUG MART

TSX:SC-NYSE:L   None
182 0 0
For those of you watching the TSX ( not many I suppose) Loblaws, a major grocery story offer to buy Shoppers Drug Mart for 12.4 Billions dollars. Loblaws was surprisingly up 5.43 % vs. 24.1 % for Shoppers Drug Mart. For me . this represent a great merger and acquisition arbitrage opportunity. I already checked the fundamentals of both company.

I don't expect the Shoppers Drug Mart stock to move higher, but I do expect Loblaws to come down. They currently have 689 millions in cash and 10.92 billions in debt. ( meaning they will need to borrow some cash)

For this reason I'm short Loblaws and Long Shoppers Drug Mart. As you can see the ratio between the two is absolutely insane right now. Hoping for a quick return to the mean

The deal would still need to be approved by regulators and the government.

Cheers

Algo
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out