Home depot Has agreed to acquire GM ,GM 11.75%, For $ 5.5 billion, a possible bid for the target with a sweet bid is proceeding to the war.
GMS investors have the reason for celebrating, with up to 12% stock on the news.
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A big premium safe
GMS was an under-guard Construction Product distributor by last week, when the company received An unwanted proposal From Qxo Evaluation of GMS at $ 95.20 per share. Soon after making the bid public, there were media reports that home depots were also interested, but some details about that possible proposal.
The Home Depot clearly made its intentions clear over the weekend. On Monday, the Home Improvement Retail Legend announced that it had reached a deal to acquire GMS for $ 110 per share. The deal, which will be done through the SRS distribution subsidiary of the Home Depot, provides a premium of 36% at the trading price of GMS on 18 June.
The Home Depot stated that the combination would provide more fulfillment and service options to professional contractors, leading to a network of more than 1,200 places and a fleet of more than 8,000 delivery trucks.
Is GMS Stock a purchase?
GMS shares are trading just below the $ 110-Prati shares offer, this means that the markets do not expect that QXO is trying to swell with a high proposal to disrupt the deal. Given the premium price, this perception is likely to be correct.
The story of construction distribution consolidation is not over, but the GMS chapter is likely to be completed. There is little reason to buy investors after the announcement of the acquisition.
Lu Whitman There is a situation in the home depot and QXO. The micle flowers have conditions and recommends the home depot. Motley is near the flower Disclosure policy,
