CA - Hot Stocks: OYST rises on merger deal; BTU ends talks with Coronado; WBA climbs; RBA drops

Launching a week when inflation data, earnings news and ongoing concerns about the Federal Reserve will likely dominate the conversation, M&A headlines provided a surprising catalyst during Monday's midday trading.

As part of this trend, Oyster Point Pharma ( OYST ) jumped after agreeing to be acquired by Viatris ( VTRS ). Meanwhile, Peabody Energy ( BTU ) climbed after talks for a merger with Australia's Coronado Global Resources fell through. At the same time, Walgreens Boots Alliance ( WBA ) rose after its VillageMD reached a deal to buy Summit Health.

On the other side of the spectrum, Ritchie Bros. Auctioneers ( NYSE: RBA ) lost about a fifth of its value after revealing a cash-and-stock deal to acquire IAA ( IAA ).

Gainers

Peabody Energy ( BTU ) showed strength in midday trading following news that merger talks have broken off between the company and Australian coal miner Coronado Global Resources. Shares rose almost 6% after Coronado announced that discussions had ended about a potential combination, per Reuters .

Elsewhere in the market, Walgreens Boots Alliance ( WBA ) also rallied on M&A-related headlines. The drug store chain's VillageMD announced a deal to acquire healthcare provider Summit Health.

The deal is valued at $8.9B. WBA also increased its 2025 sales guidance, saying it now expects a figure between $14.5B and $16B. Shares advanced 3% on the news.

Meanwhile, Oyster Point Pharma ( OYST ) surged almost 39% following the announcement of a merger deal . The company agreed to be acquired by Viatris ( VTRS ) for $11 per share in cash.

Decliner

Shares of Ritchie Bros. Auctioneers ( RBA ), an auction platform focused on industrial equipment, plunged after the company announced a deal to acquire auto retailer IAA ( IAA ), a firm that specializes in selling damaged vehicles. The stock dropped about 20% in midday action.

Under terms of the cash-and-stock deal, RBA will exchange $10 in cash and 0.5804 shares of its stock for each share of IAA common stock. The transaction is expected to close in the first half of 2023.

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