Devon Energy and Coterra agree $58bn all-stock deal

BY Richard Summerfield

US shale producers Devon Energy and Coterra Energy have announced the first large oil & gas deal of 2026 - a $58bn all-stock merger which will create a new sector giant.

Under the terms of the deal, Coterra shareholders will receive 0.70 Devon shares for each share held. Devon ⁠will own roughly 54 percent of the combined company. The transaction has an equity value of $21.4bn.

Unanimously approved by the boards of directors of both companies, the deal is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions, including approvals by Devon and Coterra shareholders. The deal is the largest in the sector since Diamondback’s $26bn acquisition of Endeavor Energy Resources in 2024.

According to a statement announcing the merger, the combined company will be named Devon Energy and headquartered in Houston while maintaining a significant presence in Oklahoma City. Clay Gaspar, president and chief executive of Devon, will lead the company, while Tom Jorden, chairman, chief executive and president of Coterra, will become non-executive chairman.

The formation of this new combined company is expected to unlock substantial value by leveraging each company’s core strengths and through the realisation of $1bn in annual pre-tax synergies. The realisation of synergies, technology-driven capital efficiency gains and optimised capital allocation will drive near and long-term per share growth.

“This transformative merger combines two companies with proud histories and cultures of operational excellence, creating a premier shale operator,” said Mr Gaspar. “We’ve now built a diverse asset base of high-quality, long duration inventory to drive resilient value creation and returns for shareholders through cycles. Underpinned by our leading position in the best part of the Delaware Basin, and a deep set of complementary assets, we expect to capture annual pre-tax synergies of $1 billion. This will drive higher free cash flow and greater shareholder returns beyond what either company could achieve alone.”

“This combination enhances the Delaware and brings together two premier organizations with complementary cultures rooted in operational excellence, disciplined capital allocation, and data-driven decision-making focused on creating per share value,” said Mr Jorden. “The combined company will offer best-in-class rock quality and inventory depth, supported by a balanced commodity mix, leading cost structure, and a conservative balance sheet. Devon Energy will be strongly positioned to deliver top-tier capital efficiency gains and consistent profitable per share growth through the commodity cycles.”

Upon completion, the newly combined company will be one of the world’s leading shale producers, with pro forma third quarter 2025 production exceeding 1.6 million barrels of oil equivalent (boe) per day, including over 550,000 barrels of oil per day and 4.3 billion cubic feet of gas per day.

The combined company’s portfolio will be anchored by acreage in the Delaware Basin, complemented by a balanced and diversified product mix that positions the company to deliver a resilient free cash flow profile. The company will also be one of the largest producers in the Delaware Basin, with pro forma third quarter 2025 production of 863,000 boe per day distributed across nearly 750,000 net acres.

News: Devon, Coterra merge to create U.S. shale giant in $58 billion deal

Prosperity Bancshares agrees $2bn Stellar Bancorp deal

BY Richard Summerfield

In a deal that will significantly enhance its market position in Texas, Prosperity Bancshares, Inc. has agreed to acquire Stellar Bancorp in a cash and stock deal worth $2bn.

Unanimously approved by the boards of directors of both companies, the transaction is expected to close during the second quarter of 2026, subject to the receipt of required regulatory approvals.

The agreement involves issuing 0.3803 shares of Prosperity stock and $11.36 in cash per Stellar share, valuing each share at approximately $39.08, representing a 20 percent premium over Stellar’s recent closing price.

Upon completion of the deal, Stellar will be merged into Prosperity, with key Stellar executives, including Robert R. Franklin Jr., Stellar’s chief executive and Ramon Vitulli, the company’s president, assuming senior leadership and board roles in the combined organisation.

The combined company will be the second largest Texas-headquartered bank by deposits, enhancing its scale, franchise strength and competitive positioning in a fast-growing regional economy while preserving a community banking focus for customers and local stakeholders.

“Together, our increased scale better positions us to invest in future opportunities and serve our customers,” said David Zalman, senior chairman and chief executive of Prosperity. “Stellar and its predecessors have been serving the Houston and Beaumont, Texas areas for many years. This is a rare opportunity to significantly enhance our presence in the Houston area, a market with a diverse economy that is continually attracting investment and has a growing population.

“Our banks have a complementary footprint, and we are familiar with and remain committed to the communities that Stellar Bank serves, including with both financial products and community support,” he added.

“By joining forces, we are creating one of the strongest Texas banking franchises, supported by an exceptional deposit base and a shared commitment to relationship-driven community banking,” said Mr Franklin. “This combination enhances our ability to serve customers with greater scale, expanded capabilities, and the financial strength needed to meet the evolving needs of a growing Texas economy. I am incredibly proud of what our team has built, and I am excited about the opportunities this merger creates for our customers, employees, and communities. Together with Prosperity, we look forward to building an even more competitive and resilient financial institution for the future.”

Prosperity is a Houston-based regional financial holding company with $38.463bn in assets as of 31 December 2025, providing personal and commercial banking services, investments and digital banking solutions to consumers and businesses across Texas and Oklahoma. The company was founded in 1983 and operates 301 full-service branches in key Texas markets and in Oklahoma.

Stellar, which operates 52 banking offices in the greater Houston, Beaumont and Dallas markets, reported $10.8bn in assets at year-end 2025.

News: Prosperity Bancshares to buy Stellar Bancorp in $2 billion deal

Capital One acquires Brex in $5.15bn deal

BY Fraser Tennant

In an acquisition that will build on its already-strong position in the business payments marketplace, US bank holding company Capital One Financial is to acquire fintech firm Brex for $5.15bn.

Under the terms of the definitive agreement, Brex will be acquired by Capital One in a combination of stock and cash, with completion expected in the middle of 2026, subject to the satisfaction of customary closing conditions.

The transaction reflects continued consolidation across the fintech industry, where shifting market conditions and tighter funding have forced many companies to reconsider long-term strategies.

A modern, artificial intelligence (AI)-native software platform offering intelligent finance solutions that make it easy for businesses to issue corporate cards, automate expense management and make secure, real-time payments, Brex also leverages AI agents to help customers automate complex workflows to reduce manual review and control spend.

Over 25,000 of the world’s best companies – from start-ups to enterprises – run their finances on Brex, including DoorDash, TikTok, Anthropic, Robinhood, Crowdstrike, Zoom, Plaid, Intel, SeatGeek and the Boston Celtics.

“Since our founding, we set out to build a payments company at the frontier of the technology revolution,” said Richard D. Fairbank, founder, chairman and chief executive of Capital One. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”

“Brex invented the integrated combination of corporate credit cards, spend management software and banking together in a single platform,” he continued. “They have taken the rarest of journeys for a fintech, building a vertically integrated platform from the bottom of the tech stack to the top.”

The deal to buy Brex comes eight months after Capital One completed its $35bn acquisition of payments network Discover.

“We started Brex in 2017 as a category creator – bringing together financial services and software into one AI-native platform,” said Pedro Franceschi, founder and chief executive of Brex. “By combining Brex’s payments expertise and spend management software with Capital One’s massive scale, sophisticated underwriting and compelling brand, we can accelerate growth and increase the speed at which we can offer better finance solutions to the millions of businesses in the US mainstream economy.”

Upon completion of the transaction, Mr Franceschi will continue to lead Brex as part of Capital One.

Mr Franceschi concluded: “In partnership with Capital One, we will maximise founder mode and supercharge our next chapter.”

News: Capital One strikes $5.15 billion Brex deal, quarterly profit rises on interest income boost

GSK acquires RAPT Therapeutics in $2.2bn deal

BY Fraser Tennant

In the UK drugmaker’s latest move to bolster its pipeline, GSK is to acquire US biotech RAPT Therapeutics (RAPT) in a transaction valued at $2.2bn.  

Under the terms of the definitive agreement, GSK will pay RAPT Therapeutics shareholders $58 per share in cash within 10 business days of signing. The transaction is expected to close in the first quarter of 2026.

A California-based, clinical-stage biopharmaceutical company dedicated to developing novel therapies for patients living with inflammatory and immunologic diseases, RAPT focuses on discovering, developing and commercialising novel therapies for patients living with inflammatory and immunologic diseases.

The deal to acquit RAPT includes ozureprubart, a potentially best-in-class anti-immunoglobulin E (IgE) anti-IgE antibody, in development for prophylactic protection against food allergens. Around 94 percent of severe food allergies are caused by IgE-mediated reactions.

In the US, over 17 million people are diagnosed with food allergies, with more than 1.3 million people suffering severe reactions. Moreover, 65 percent of severe food allergy patients are children and adolescents, resulting in more than 3 million patient visits each year to hospital and emergency care.

The transaction gives GSK the global rights to the ozureprubart programme, excluding mainland China, Macau, Taiwan and Hong Kong.

“The addition of ozureprubart brings another promising new, potential best-in-class treatment to GSK’s pipeline,” said Tony Wood, chief scientific officer at GSK. Food allergies cause severe health impacts to patients with existing treatment requiring injections as frequently as every two weeks. Ozureprubart offers the opportunity to bring sustained protection to patients with dosing every 12 weeks, and is consistent with our approach to acquire assets that address validated targets and where there is clear unmet medical need.”

The transaction is subject to customary closing conditions, including the tender of a majority of RAPT’s outstanding shares of common stock in the tender offer and expiration or termination of the applicable waiting period under the under the Hart-Scott-Rodino Act in the US.

Brian Wong, president and chief executive of RAPT, concluded: This transaction has the potential to provide access to the global development and commercialisation capabilities, resources and infrastructure that GSK has to offer and ultimately bring added value to our pipeline, patients and stockholders.”

News: GSK makes $2.2 billion swoop for RAPT Therapeutics' food allergy drug

Boston Scientific agrees $14.5bn Penumbra deal

BY Richard Summerfield

In a move which will bolster its cardiovascular reach, Boston Scientific has agreed to acquire medtech firm Penumbra in a deal valued at about $14.5bn.

Under the terms of the agreement, which has been approved by the board of directors of each company, the transaction values each Penumbra share at $374, Penumbra stockholders have the right to elect to receive $374 in cash or 3.8721 shares of Boston Scientific common stock, valued at $374 based on the volume weighted average price of Boston Scientific common stock over the last 10 trading days, as of 13 January 2026, subject to proration. The total transaction consideration is approximately 73 percent in cash and approximately 27 percent in shares of Boston Scientific common stock.

The transaction is expected to complete in 2026, ⁠and Penumbra’s chairman and chief executive officer, ‌Adam Elsesser, will then join Boston’s board.

“Penumbra is a well-established company with an experienced, high-performing team and this acquisition offers Boston Scientific an opportunity to enter new, fast-growing segments within the vascular space,” said Mike Mahoney, chairman and chief executive of Boston Scientific. “The addition of Penumbra can expand access for these novel technologies to more patients and customers around the world, further enhancing our revenue and margins over time with proven offerings that have a history of growth and innovation.”

“Our decades-long development of therapies for challenging medical conditions has focused on deep innovation for complex diseases so that we can offer physicians novel solutions to transform patient care,” said Mr Elsesser. “I am grateful for the amazing people who have contributed to this work and look forward to uniting our efforts and shared values as we come together with Boston Scientific.”

According to a statement announcing the deal, Penumbra expects to deliver fourth quarter reported revenue growth in the range of approximately 21.4-22 percent and full year 2025 reported revenue of approximately $1.4bn, representing growth in the range of approximately 17.3-17.5 percent over the prior fiscal year.

Boston Scientific expects to finance the approximately $11bn cash portion of the transaction consideration with a combination of cash on hand and new debt. The transaction is expected to be $0.06-0.08 dilutive to adjusted earnings per share for Boston Scientific in the first full year following the close of the acquisition, neutral to slightly accretive in the second year, and more accretive thereafter. The impact to generally accepted accounting principles (GAAP) earnings per share is expected to be dilutive in the first full year following the close, and less dilutive or increasingly accretive thereafter, due to amortisation expense and acquisition-related net charges.

News: Boston Scientific beefs up heart device portfolio with $14.5 billion Penumbra deal