As is usually the case, there was a lot of weekend news regarding mergers, acquisitions, partnerships, and more. So, let’s review the biggest ones. 👇
First up is oil giant Chevron buying its U.S. rival Hess for $53 billion, marking the second-largest deal in decades. The all-cash deal comes just weeks after Exxon Mobil purchased Pioneer Natural Resources for $59.5 billion to expand its reach in the Permian Basin. It also purchased Denbury this summer for $4.9 billion.
The deal makes Chevron a partner with Exxon in Guyana’s oilfields, which are expected to generate roughly 1.2 million barrels of oil per day by 2027. While it still needs to clear U.S. and international regulatory reviews, analysts see limited anti-trust concerns given the breadth of the industry. And with oil prices staying elevated and the oil majors coming off years of record profits, it’s expected that further industry consolidation is ahead. 🛢️
Next up is Disney, which continues to sell off some of its non-core assets as it refocuses its overall business strategy. The company is reportedly nearing a $10 billion deal to sell a controlling stake in its Indian business to conglomerate Reliance Industries, its largest rival in the country. It had been exploring other options with billionaire Gautam Adani, Sun TV Network owner Kalanithi Maran, and private equity firm Blackstone. Final details are expected next month if talks go smoothly. 🐭
The global shipping industry saw a major buyout as Stonepeak acquired one of the world’s largest lessors of intermodal containers, Textainer Group Holdings. The investment firm specializing in infrastructure and real assets will pay $50 per share in cash, giving the company an enterprise value of about $7.4 billion. 🚢
Customer engagement software and payments solution company EngageSmart confirmed Vista Equity Partners is acquiring it in a $4 billion all-cash deal. It represents a roughly 13% premium to Friday’s closing price and includes a 30-day “shopping” period during which EngageSmart can solicit other buyout bids. 💰
A Pfizer and Roivant Sciences company, Telavant Holdings, is being acquired by Swiss healthcare company Roche for $7.1 billion. The immunology firm produces drugs for patients with inflammatory and fibrotic diseases and is currently developing a “promising new therapy” for patients with Crohn’s disease.
Roche will use its resources to begin global Phase 3 trials, expanding clinical testing of Telavant’s drugs to hundreds of thousands of patients. The deal includes a $150 million milestone payment and gives Roche the option to collaborate with Pfizer on a new inflammatory bowel disease drug. 💊
Lastly, fertility firm INVO Bioscience jumped nearly 300% after agreeing to an all-stock reverse merger with oncology and regenerative medicine company NAYA Biosciences. Once the deal closes later this year, INVO shareholders will own roughly 12% of the combined company. 🤝