Sembcorp to acquire Alinta Energy for $4.3bn

BY Richard Summerfield

Sembcorp Industries has agreed to acquire Australian electricity generating and gas retailing company Alinta Energy from Chow Tai Fook Enterprises Ltd for an enterprise value of $4.32bn.

Sembcorp, which is backed by Singapore’s state-owned Temasek Holdings Pte, said it will keep Alinta’s existing management team and operational structure. The deal is expected to complete in the first half of 2026, subject to regulatory approval.

Chow Tai Fook Enterprises, the investment arm of Hong Kong billionaire Henry Cheng, purchased Alinta for A$4bn in 2017.

According to Sembcorp, the deal will help the company reach its target of producing 25 gigawatts of renewable energy by 2028. Alinta currently produces 3.4 gigawatts of electricity generated from gas, wind, solar and coal plants across Australia and New Zealand and is developing another 10.4 gigawatts of additional capacity. Sembcorp added that most of its planned S$14bn investment between now and 2028 will go toward renewable energy projects.

“Australia is a well-established and forward-looking energy market, and this acquisition strengthens our presence in a key developed market while providing a scalable platform for Sembcorp to accelerate renewables and low-carbon growth,” said Alex Tan, president and chief executive of Renewables, East at Sembcorp. “By combining Sembcorp’s global renewables expertise and access to capital with Alinta’s strong local workforce and project pipeline, we believe we can contribute meaningfully to Australia’s decarbonisation goals and support long-term employment opportunities in local communities. We remain committed to operating responsibly and sustainably, working closely with government, communities, and Alinta’s experienced management team to deliver a transition that meets national and stakeholder needs.”

 “Sembcorp’s investment in Alinta is a vote of confidence in Australia, our company, our team of professionals, and our future,” said Jeff Dimery, managing director and chief executive of Alinta. “Sembcorp understands that reliability and affordability are the foundation of a successful energy transition. Sembcorp brings the investment capacity and experience to help us deliver both. CTFE’s stewardship has created a foundation and culture for growth. CTFE has given us an opportunity to transform our operations as well as the future of Australia’s energy supply. They have also fostered the winning culture we need to succeed.

“I look forward to working with the Sembcorp team to further grow and accelerate Alinta’s pipeline of renewables and storage opportunities across Australia. As a well capitalised investor with strong operational expertise, Sembcorp will help us scale up responsibly, provide long-term job security for our people, and deliver the projects needed to support Australia’s clean energy future,” he added.

“Our eight-year investment in Alinta has played an important role in providing reliable and affordable energy to Australians,” said Henry Cheng, chairman of Chow Tai Fook Group. “I am immensely proud of what the CTFE and Alinta teams have accomplished on the energy transition journey. I thank the Alinta Board, led by Independent Chairman Robert Nicholson, and the CTFE team that recognised and then realised Alinta’s potential. We are extremely grateful for the partnership, dedication and commitment of the entire Alinta family throughout the years. We are excited for Alinta’s next chapter with Sembcorp and look forward to watching Alinta continue to grow under Sembcorp’s leadership.”

The deal is the latest in a series of disposals by the Cheng family, which has been selling assets to pay off mounting debts accrued by their real estate firm New World Development amid a property downturn in Hong Kong and China.

News: Singapore's Sembcorp powers into Australia with $4.3 billion Alinta Energy takeover

WTW strikes Newfront deal

BY Richard Summerfield

WTW, a leading global advisory, broking and solutions company, has agreed to acquire Newfront, a top-40 US broker combining deep specialty expertise and cutting-edge technology, in a deal worth up to $1.3bn.

The deal will see WTW pay upfront and contingent consideration payments totalling $1.3bn. The upfront portion of $1.05bn is comprised of approximately $900m in cash and $150m in equity to be paid to Newfront employee-shareholders.

The contingent consideration of up to $250m is payable primarily in equity, subject to Newfront’s achievement of specified performance targets. Additionally, up to an incremental $150m payable primarily in equity would become payable if Newfront achieves above-target revenue growth.

The transaction is expected to close during the first quarter of 2026, subject to receipt of certain regulatory approvals and other customary closing conditions.

According to a statement announcing the deal, WTW expects to realise run-rate cost synergies of approximately $35m by the end of 2028, driven primarily by technology-driven efficiencies and overhead optimisation across both Newfront and WTW. WTW expects to incur transaction expenses of $25m and cash integration costs of approximately $100m, including technology integration, systems alignment and employee-related costs, as well as approximately $30m of one-time non-cash expenses.

“We’re delighted to welcome Newfront to the WTW team as we take an important step forward in executing on our strategy through a transaction that will drive value creation for our clients, colleagues and shareholders,” said Carl Hess, chief executive of WTW. “The Newfront team has built a broking business, powered by exceptional technology that offers a smart, fast and efficient client experience and complements our own technology investments. This combination strengthens our presence in the U.S. middle market, accelerates our technology and specialty strategies, and enables the delivery of an integrated, end-to-end technology platform that will drive growth, enhance operational efficiency and better serve our clients.”

“Newfront is excited to join WTW and combine our technology-native approach to insurance broking with WTW’s global presence and established trading, analytics and broking platforms,” said Spike Lipkin, co-founder and chief executive of Newfront. “WTW’s culture and strategic focus on specialization and technology are a strong fit for Newfront, and we will work together to bring an innovative and efficient broking experience to our combined global client base. We will continue to serve our clients with the speed and intelligence they expect and will offer new capabilities enabled by WTW’s comprehensive portfolio of global solutions and products.”

News: WTW to buy brokerage firm Newfront in up to $1.3 billion deal

Netflix to acquire Warner Bros. in £72bn deal

BY Fraser Tennant

In what would be a game-changing deal for Hollywood’s biggest studios, US streaming service Netflix agreed to acquire global media and entertainment company Warner Bros. Discovery’s (WBD’s) TV, film studios and streaming division in a deal valued at $72bn.

Under the terms of the definitive agreement, WBD shareholders will receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share.

The acquisition would bring together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best in class streaming service with WBD’s century-long legacy of world class storytelling.

Through adding WBD’s extensive film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose – allowing Netflix to optimise its plans for consumers, enhancing viewing options and expanding access to content.

The deal will also enhance Netflix’s studio capabilities, allowing the company to significantly expand US production capacity and continue to grow investment in original content over the long term, creating jobs and strengthening the entertainment industry.

“Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities,” said Greg Peters, co-chief executive of Netflix. “With our global reach and proven business model, we can introduce a broader audience to the worlds they create – giving our members more options, attracting more fans to our best in class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

The transaction was unanimously approved by the boards of directors of both Netflix and WBD.

“This transaction combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, president and chief executive of WBD. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

The transaction is expected to close in 12-18 months, subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions.

“Our mission has always been to entertain the world,” noted Ted Sarandos, co-chief executive of Netflix. “This acquisition will improve our offering and accelerate our business for decades to come.”

However, on Monday 08 December the Netflix-WBD transaction was thrown into uncertainty as Paramount responded with a $108.4bn hostile bid. It announced an all-cash tender offer to acquire all of the outstanding shares of WBD for $30 per share. Paramount’s proposed transaction is for the entirety of WBD, including the Global Networks segment, and would provide shareholders $18bn more in cash than the Netflix consideration, according to the company.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” said David Ellison, chairman and chief executive of Paramount. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.”

News: Netflix to buy Warner Bros Discovery’s studios, streaming unit for $72 billion

Marvell to acquire Celestial AI in $3.25bn deal

BY Fraser Tennant

In a deal that accelerates its connectivity strategy for next-generation artificial intelligence (AI) and cloud data centres, chipmaker Marvell Technology is to acquire semiconductor start-up Celestial AI in a transaction valued at approximately $3.25bn.

Under the terms of the definitive agreement, Celestial AI will receive $1bn in cash and 27.2m shares of Marvell common stock worth $2.25bn – based on the average volume weighted average price for the 10 trading days ending the second day prior to signing.

The deal to acquire Celestial AI will allow Marvell to tap into the start-up’s work on photonics, which uses light rather than electrical signals to create connections between AI chips and memory chips – an area in which Marvell competes with Broadcom and the world’s most valuable company, Nvidia.

Combined with its existing leadership in scale-out and scale-across connectivity, Marvell expects the combination with Celestial AI to result in the industry’s most comprehensive provider of high-bandwidth, low-power, low-latency solutions for next-generation data centre connectivity.

“The acquisition of Celestial AI is a transformative step in Marvell’s evolution and expands our leadership in AI connectivity, as scale-up becomes the next frontier in AI infrastructure,” said Matt Murphy, chairman and chief executive of Marvell. “This builds on our technology leadership, broadens our addressable market in scale-up connectivity, and accelerates our roadmap to deliver the industry’s most complete connectivity platform for AI and cloud customers.”

Founded in 2020, Celestial AI is the creator of the ‘photonic fabric’, an optical interconnect technology platform for AI computing systems. The photonic fabric provides the foundational technology for data centre computing, networking and memory systems to enable advancements in AI with sustainable and profitable business models.

“Marvell is the ideal home for our Photonic Fabric, with the scale, customer relationships and connectivity leadership to take this platform into high-volume production,” said David Lazovsky, co-founder and chief executive of Celestial AI. “Together with Marvell’s scale-up switching strategy, we’re excited to accelerate the transition to optical scale-up interconnect and expand what next-generation AI infrastructure can achieve.”

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

Marvell expects meaningful revenue contributions from Celestial AI to begin in the second half of 2028, reaching a $500m annualised run rate in the fourth quarter of 2028, doubling to a $1bn dollar run rate by the fourth quarter of 2029.

News: Marvell to buy chip startup Celestial AI for $3.25 billion, bullish on growth next year

Goldman Sachs announces $2bn Innovator deal

BY Richard Summerfield

Goldman Sachs has agreed to acquire Innovator Capital Management, a provider of defined-outcome exchange-traded funds (ETFs) in a cash and stock deal worth around $2bn. The deal marks Goldman’s latest attempt to bolster its asset management division.

According to Goldman, the acquisition, which is expected to close in the second quarter of 2026, will boost its ETF offerings in a fast-growing corner of the investing world. Goldman notes that the acquisition strategically expands the firm’s more durable revenue and reinforces its commitment to offering institutional and individual investors comprehensive solutions.

Upon completion of the deal, Innovator’s 60-plus employees will join Goldman’s asset management division. Bruce Bond, co-founder and chief executive of Innovator, along with other key executives, will join Goldman Sachs Asset Management.

“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, chairman and chief executive of Goldman Sachs. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios. Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”

“This transaction is a pivotal milestone for our business,” said Mr Bond. “Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry. We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”

According to a statement announcing the deal, citing data by Morningstar, global active ETF assets under management are at $1.6 trillion, growing at a 47 percent compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through the ETF wrapper.

Having grown at 66 percent CAGR since 20203, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats. Investors are increasingly using defined outcome ETFs to add a broad and customisable range of objectives to their portfolios that meet their risk control needs and performance objectives.

Innovator has been led by Mr Bond since he co-founded the firm with John Southard in 2017. The firm launched the first defined-outcome ETFs in 2018, and is currently the second-largest provider of buffers behind asset manager First Trust.

Goldman has made a series of deals in the past three months, including the acquisition of venture capital investor Industry Ventures and a $1bn investment in T. Rowe Price Group Inc.

News: Goldman Sachs to buy ETF sponsor Innovator in $2 billion cash-and-stock deal