A pair of big M&A headlines have captured the attention of Wall Street on Wednesday, as Anheuser Busch Inbev announced the completion of a highly-anticipated $106 billion buyout of SABMiller. In addition, grocery giant Kroger Co KR 1.32% announced an $800 million buyout of Roundy’s Inc RNDY 0.14%, sending shares of the small-cap supermarket chain soaring 64 percent.
Benzinga had a chance to speak with Chris Pultz, manager of the Kellner Merger Investor Fund about what the Busch/SABMiller deal says about the current M&A environment.
Market Remains Hungry
Generally speaking, many investors are watching for signs that the current M&A boom has peaked. The last two M&A cycle peaks preceded major stock market crashes in 2000 and 2008, but the current cycle is showing no signs of slowing down.
“I think it’s pretty amazing that they were able to put this size deal together in the timeframe that they were able to, especially lining up financing with 20 different banks to put together a $75 billion financing package,” Pultz said of the Anheuser Busch/SABMiller deal.
“It shows you the appetite and the ability of borrowers who are looking to do smart, strategic deals, the willingness of people to lend the money and the confidence of the banks to go out and syndicate that once they provide the bridge loans for these companies.”
No Regulatory Roadblocks
Pultz sees…
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