Coatings giants AkzoNobel and Axalta agree $25bn merger

BY Fraser Tennant

In an all-stock merger of equals that will create a premier global coatings company, AkzoNobel and Axalta Coating Systems are to combine with an enterprise value of approximately $25bn.

Under the terms of the definitive agreement, which has been unanimously approved by the AkzoNobel supervisory board, the AkzoNobel board of management and the Axalta board of directors, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned.

The combination brings together two industry leaders with complementary portfolios of highly regarded brands to better serve customers across key end markets and enhance value for shareholders, employees and other stakeholders.

Anchored in both companies’ proud histories and broad expertise, the combined business will have a highly attractive financial profile, industry-leading innovation capabilities and a balanced global footprint spanning over 160 countries to bring global capabilities to local customers.

“We are excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry,” said Greg Poux-Guillaume, chief executive and chairman of the board of management of AkzoNobel. “This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential.”

With attractive margins and robust cash flow generation, the combined company is expected to drive identified and actionable run-rate synergies of approximately $600m – 90 percent of which are expected to be achieved within the first three years following the close of the transaction.

“We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships,” said Chris Villavarayan, chief executive and president of Axalta. “As our industry continues to grow and evolve, this combination with AkzoNobel enables us to do the same, with a sharper competitive edge and new avenues and opportunities for growth.”

The transaction is expected to close in late 2026 to early 2027, subject to approval by shareholders, the receipt of requisite regulatory approvals and other customary closing conditions.

“Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry,” stated Mr Villavarayan. “Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures.”

News: AkzoNobel, Axalta to merge creating $25 billion paint giant

Merck & Co agrees $9.2bn Cidara deal

BY Richard Summerfield

Pharmaceutical company Merck & Co. has announced is agreement to acquire Cidara Therapeutics for $9.2bn, adding a late-stage antiviral designed to prevent influenza infection to its pipeline.

The deal will see Merck pay $221.50 per share in cash for the company, a premium of 108.9 percent from Cidara’s last closing price before the acquisition was announced. The deal, which has been approved by both Merck’s and Cidara’s boards, is expected to close in the first quarter of 2026.

In recent years, Merck has spent billions of dollars to gain rights to a new kind of preventive flu medicine, hoping that the treatment is poised to become a top seller in the years ahead. The acquisition of Cidara is further evidence of the company’s desire to expand its portfolio of treatments as it prepares for patent losses that are expected to erode its sales by $18bn over the next five years. In 2028, Merck faces patent expiration for Keytruda, the best-selling drug in pharmaceutical history, which accounted for almost half of the company’s revenue in 2024. In July, the company also announced a similar-sized purchase, when it agreed to buy respiratory drugmaker Verona Pharma Plc for around $10bn.

The deal for Cidara revolves around the company’s drug CD388, a long-acting treatment to prevent the flu in people who are at higher risk of complications. CD388 is currently in late-stage trials, with interim study results expected next year. It has also been granted a type of Food and Drug Administration designation that should speed up a future review. In recent research notes, RBC Capital Markets projected a $3.8bn market opportunity for CD388.

CD388 is an antiviral that combines a small molecule with a protein fragment. It is not a vaccine, meaning it does not depend on producing an immune response. Rather, it is a long-acting treatment to prevent the flu in people who are at higher risk of complications. Cidara says CD388 could provide an additional option to vaccines and antivirals to help prevent influenza.

“This acquisition expands and complements our respiratory portfolio and pipeline. Influenza continues to pose a significant global health threat, causing widespread illness, morbidity and death each year especially in older adults and immunocompromised individuals, such as those with cancer and chronic diseases,” said Dean Y. Li, president of Merck Research Laboratories. “CD388 is a novel late-phase candidate with important strain-agnostic properties being evaluated for the prevention of symptomatic influenza in high-risk individuals.”

“We continue to execute our science-led business development strategy, augmenting our pipeline with CD388, a potentially first-in-class, long-acting antiviral designed to prevent influenza in individuals at higher risk of complications,” said Robert M. Davis, chairman and chief executive of Merck. “We intend to build on the Cidara team’s remarkable progress and are confident that CD388 has the potential to be another important driver of growth through the next decade, creating real value for shareholders.”

News: Merck bets on flu prevention with $9.2 billion deal for Cidara Therapeutics

KKR sells Novaria for $2.2bn

BY Richard Summerfield

Investment firm KKR is to sell Novaria Group, a leading provider of engineered aerospace components and specialty processes, to Arcline Investment Management in a transaction valued at $2.2bn, subject to customary closing conditions and regulatory approvals.

Since KKR made its initial investment in Novaria in 2020, the company has more than tripled in size, completing 13 strategic add-on acquisitions that broadened its product portfolio and enhanced its manufacturing footprint. 2025 has been a year of notable deals for Novaria. In January, the company announced it had acquired Bandy Manufacturing from JW Hill Capital in a deal involving two aerospace companies. In July, it announced its acquisition of Precision Aero Corp (PAC), a subsidiary of Precision Products Machining Group.

Today, the company serves over 3000 customers globally and employs over 1600 people across the US. Novaria’s products can be found on virtually every Boeing and Airbus commercial aircraft in service today.

“We are proud of how we built Novaria in partnership with the management team into a resilient aerospace and defense supplier that benefits its employees and customers,” said Josh Weisenbeck, a partner at KKR. “This milestone was enabled by an ownership mindset, operational excellence, and putting our people first, and we are pleased to see all employees share in the value they helped create.”

“This transaction represents the success of our long-standing partnership with KKR and the dedication of the Novaria team,” said Bryan Perkins, chief executive of Novaria Group. “Novaria’s focus on customer partnership within the aerospace industry has driven remarkable results, and this outcome is a reflection of the collective effort and commitment of our colleagues.”

“Novaria has a proven track record of identifying, acquiring and growing niche aerospace product businesses that share a common culture rooted in innovation and customer service,” said Arcline in a statement. “We’re excited to partner with Bryan and the entire Novaria team to continue executing this strategy.”

Founded in 2011 and headquartered in Fort Worth, TX, Novaria is a leading provider of niche engineered components and specialty processes that serve the aerospace and defence industries. With a mission to improve the aerospace supply chain, the company is dedicated to delivering exceptional customer service and quality to its customers. KKR acquired Novaria from Rosewood Private Investments and Tailwind Advisors through its Americas XII Fund for an undisclosed amount.

Arcline Investment Management is a growth-oriented private equity firm with over $20bn in assets under management. It seeks to build the next generation of industrial compounders – market-leading, non-disruptible industrial platforms designed to consistently grow earnings over decades.

Upon completion of the deal, all Novaria employees will receive cash payouts when the transaction closes through an employee ownership programme established during KKR’s ownership, as is customary for the firm. According to KKR, this programme boosts productivity, revenue and retention.

News: Arcline Investment Management to Acquire Novaria Group from KKR for $2.2 Billion

Kimberly-Clark to acquire Kenvue in $48.7bn deal

BY Fraser Tennant

In a deal that creates a global health and wellness leader, multinational consumer goods and personal care corporation Kimberly-Clark is to acquire consumer health company Kenvue for $48.7bn.

Under the terms of the definitive agreement, Kenvue shareholders will receive $3.50 per share in cash as well as 0.14625 Kimberly-Clark shares for each Kenvue share held at closing, for a total consideration to Kenvue shareholders of $21.01 per share.

This transaction brings together two iconic American companies to create a combined portfolio of complementary products, with trusted brands, including Huggies and Kleenex. With a broader product range and greater reach, the combined company will maximise both companies’ complementary strengths to accelerate global growth.

“We are excited to bring together two iconic companies to create a global health and wellness leader,” said Mike Hsu, chairman and chief executive of Kimberly-Clark. "Kenvue is uniquely positioned at the intersection of consumer packaged goods and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”

The transaction has been unanimously approved by each company’s board of directors.

“We are pleased to have reached this agreement with Kimberly-Clark that delivers significant upfront value for our shareholders and substantial upside potential through ownership in the combined company,” said Larry Merlo, chair of the board at Kenvue. “Bringing together Kenvue and Kimberly-Clark creates a uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead.”

The transaction is expected to close in the second half of 2026, subject to the receipt of Kenvue and Kimberly-Clark shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions.

Mr Hsu concluded: “We look forward to working with the Kenvue team to bring our companies together, and are confident that we will drive significant value for our combined shareholders.”

News: Kimberly-Clark bets $40 billion for Kenvue despite Tylenol controversy

SM Energy and Civitas to merge in $12.8bn deal

BY Richard Summerfield

In the latest deal in the ongoing consolidation of the US shale industry, Permian Basin explorer SM Energy Co. has agreed to acquire rival Civitas Resources Inc. in an all-stock transaction worth around $2.8bn.

Under the terms of the deal, Civitas shareholders will receive 1.45 shares of SM Energy for each Civitas share held, giving them about 52 percent ownership of the combined company. This values Civitas at about $30.29 per share, a 5 percent premium to its closing price on 31 October, and gives the deal an equity value of roughly $2.81bn. The combined company’s enterprise value will be around $12.8bn, inclusive of each company’s net debt.

Upon completion, which is expected in the first quarter of 2026, the combined company will have a premier portfolio of approximately 823,000 net acres, with the Permian position being the cornerstone. The company will also have a pro forma full-year 2025 consensus free cash flow generation of more than $1.4bn, which will enable sustained capital returns, and increased market capitalisation which will enhance trading liquidity with broader investment appeal.

SM Energy expects to save about $200m annually, and potentially up to $300m, through lower overhead and operating costs. The company plans to prioritise free cash flow to cut debt and to maintain its quarterly dividend of 20 cents per share.

“This strategic combination creates a leading oil and gas company with enhanced scale, numerous value-adding synergies, and significant free cash flow, driving superior value to stockholders,” said Herb Vogel, chief executive of SM Energy. “Congratulations to the Civitas team on building a leading sustainable energy company in the Permian and DJ basins since its inception in 2021. Their operational excellence and talent are reflected in today’s transaction. Together, we look forward to unlocking stockholder value as a unified organization.”

“This merger combines two premier operators and establishes a company with transformative scale in the highest-return US shale basins,” said Beth McDonald, president and chief operating officer of SM Energy. “By combining two complementary portfolios, we expect to unlock significant free cash flow to strengthen our balance sheet, accelerate stockholder returns, and position us for sustainable growth through every cycle.”

“Today marks a pivotal moment for Civitas and SM Energy as we announce a merger that unlocks new potential to deliver enhanced stockholder value and achieve outcomes beyond the reach of either company alone,” said Wouter van Kempen, interim chief executive of Civitas. “By combining our strong technical teams and complementary assets, we gain scale, sharpen our competitive edge, and strengthen our ability to responsibly produce energy that contributes to energy security and prosperity. This merger positions us to lead with operational and environmental excellence, generate meaningful synergies, and accelerate value creation.”

Mr Vogel will lead the combined company, post-close. The company’s 11-member board will include six directors from SM and five from Civitas.

News: US shale producers SM Energy, Civitas to merge in $12.8 billion deal