5 Merger Arbitrage Opportunities in 2023

4. Amgen, Inc. (NASDAQ:AMGN)’s $27.8B Acquisition of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)

Consideration: $116.50 a share
Spread: 12.56%
Main Risk: Regulatory Approval

The FTC has also set sights on Amgen, Inc. (NASDAQ:AMGN)’s proposed $27.8 billion Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) takeover. In its submissions, the agency insists that Amgen could end up leveraging its existing product portfolio to enable a monopolistic position of Horizons meds for thyroid eye disease and chronic gut.

Amgen, Inc. (NASDAQ:AMGN) seeks to purchase Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) for $116.50 a share. With Horizon trading for about 103.50 a share, the arbitrage spread is $13 or 12.56%. What this means is that there is a prospect of gaining 12.56% on acquiring the stock at current levels.

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