Takeover deals can be a signal of positive market sentiment, indicating that the acquiring company is confident in its growth prospects and is willing to invest in expanding its market share. Such deals often lead to an increase in stock prices as they indicate potential value creation and synergies for the acquiring company. Takeover deals may provide an opportunity for investors to capitalize on market inefficiencies and earn profits through arbitrage strategies, such as buying the target company’s stock at a discount to the offer price and profiting from the price convergence upon deal completion.
Here are three takeover targets for the week –
Green Plains Partners LP – SYM: GPP
Recent Price: $12.38
Takeover Action: Green Plains (GPRE) submits a proposal to acquire all Green Plains Partners’ (GPP) common units it does not already own, in a stock-for-unit exchange.
Description: Green Plains Partners LP provides fuel storage and transportation services in the United States. The company acquires, owns, develops, and operates ethanol and fuel storage facilities, terminals, transportation assets, and other related assets and businesses.
Holly Energy Partners, L.P. – SYM: HEP
Recent Price: $16.46
Takeover Action: HF Sinclair Corporation (DINO) announced that it has submitted a non-binding proposal to acquire all of the outstanding common units of Holly Energy Partners, L.P. (HEP) not beneficially owned by HF Sinclair or its affiliates in exchange for common stock, par value $0.01 per share, of HF Sinclair.
Description: Holly Energy Partners, L.P. provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry in the United States. It operates through two segments, Pipelines and Terminals; and Refinery Processing Unit. The company operates refined product pipelines that transport conventional gasolines, reformulated gasolines, and low-octane gasolines for oxygenate blending, as well as sulfur diesel and jet fuels, and liquefied petroleum gases; intermediate product pipelines that transport intermediate feedstocks and crude oils; and oil trunk, gathering, and connection pipelines that delivers crude oil. Holly Energy Partners, L.P. was incorporated in 2004 and is based in Dallas, Texas.
Braskem S.A. – SYM: BAK
Recent Price: $10.43
Takeover Action: According to Bloomberg, Braskem SA (BAK), one of the world’s top petrochemicals makers, received an offer of as much as 37.5 billion reais ($7.6 billion) from Abu Dhabi National Oil Co. and Apollo Global Management.
Description: Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in Camaçari, Brazil.