Monday’s market recap: Equities Surge on Merger Deals, Others Dip on Q3 Results and Shell moves to UK

16 November 2021 By

Creative Realities up 80% on merger transaction with Reflect Systems
Oatly and Advance Auto Part shares dip in Q3 2021 results
Shell is moving tax offices to the UK

After announcing a series of mergers and acquisitions, several US equities gained while some tanked after releasing quarterly results.

Creative Realities surged on a merger deal

Creative Realities Inc. (NASDAQ: CREX) surged 80% after announcing the signing of a merger deal with Reflect Systems. According to the merger agreement terms, Reflect Systems will be operating under the Creative Realities name. Creative Realities CEOI Rick Mills will continue acting as the CEO of the merged company. Reflect Systems owns content management systems like ReflectView, a standard for scalable, flexible, and reliable digital signage.

Restaurants Brands expanding international presence

Restaurants Brands International Inc. (NYSE: QSR) stock moved 1.3% up after the company announced that it would acquire Firehouse Subs. The fast-food chain is acquiring the Jacksonville-based restaurant chain in cash consideration of $1 billion. The company is optimistic that the acquisition will impact earnings per share positively and boosts the share price. Equally, the purchase will be accretive to the company’s US growth strategy and internationally.

Duration Capital Management to acquire Casper Sleep

Also, Casper Sleep Inc. (NYSE: CSPR) stock jumped over 90% on Monday following the announcement that Durational Capital Management will acquire the mattress manufacturer. The private equity firm values Casper Sleep at $6.9 per share. The companies expect the deal to close in Q1 2022 and after which Durational Capital will take the mattress maker private, barely two years after debuting in the NYSE.

Oatly Group dips 20% on Q3 2021 results

Oatly Group (NASDAQ: OTLY) shares were down 20% after the oat drink company released its Q3 2021 financial results. The company reported a 114.7% YoY revenue increase to $171.1 million. The revenue growth is attributable to more product supply from the company’s manufacturing facility in Vlissingen, Netherlands.

Advance Auto Parts reports revenue of $169.8 million

Advance Auto Parts Inc. (NYSE: AAP) shares dropped 2% after hours on Monday after the company reported its Q3 results. The company topped estimates in fiscal Q3 2021 by reporting a net income of $169.8 million, translating to $2.7 per share. The company had net sales of $2.6 billion, representing a YoY growth of 3.1%.

Royal Dutch Shell to relocate tax offices to the UK

Royal Dutch Shell plc (NYSE: RDS) is moving its tax headquarters to the UK from the Netherlands. The oil giant plans to dissolve its dual share structure and do away with “Royal Dutch” from the name. The announcement is a huge blow to the Netherlands that lost Unilever in 2020. Shell will need 75% of its stockholders to approve the move.