A month in markets: May 2021

'Sell in May' came and went quickly this year – the start of the month was rugged, but the market came roaring back with gusto and shrugged it off without blinking. 

All eyes were on the Fed Reserve's outlook on inflation and interest rate jitters ensued, which were then quelled when figures were on par with expectations. RBA figures just release reiterate the 'rates lower for longer' rhetoric, despite the economy managing 1.8% quarter-on-quarter growth and hitting pre-pandemic levels. The ASX 200 has continued to power on, with two all-time highs (and the 7,200 point resistance barrier breached) in the last week alone. 

Openmarkets movers and shakers may 2021

Meanwhile, we thought we'd focus on some interesting mergers and acquisitions that came out of the woodwork.

Major M&As in May

Put it all on black

BetMakers (ASX:BET) went all in on Tabcorp (ASX:TAH), dangling $1B cash and $3B in BET shares in front of Tabcorp investors. Recently, Tabcorp entertained $3.5B offers from both Entain and Apollo Management. This activity has pushed TAH to a 4-year high of $5.17.

Premium gas

Seven Group Holding (ASX:SVW) made a bid for building materials company Boral (ASX:BLD) of $6.50/share, which valued the business at about $8B. The bid represented an increase of 18% from where the stock was trading at the end of March, and 22% premium to the six-month volume weighted average price (VWAP).

Keep calm and buy casinos

Star Entertainment Group (ASX:SGR) sought to merge with Crown Resorts (ASX:CWN) after announcing a $12B nil-premium merger proposal. The offer encompassed 2.68 Star shares for every Crown share, valuing the troubled casino operator at $14B.

PEXA on a home run

Equity giant KKR and bid partner Domain Holdings (ASX:DHG) made a big of $2.5B+ play for property exchange platform PEXA. Canadian firm Dye & Durham also voiced their interest in PEXA, while PEXA themselves look to IPO.

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