Servier acquires cancer biotech Day One in $2.5bn deal

BY Fraser Tennant

In a deal that expands its brain tumour treatment portfolio, French drugmaker Servier is to acquire US-based Day One Biopharmaceuticals for approximately $2.5bn.

Under the terms of the definitive agreement, Servier will acquire Day One for $21.50 per share in cash, a premium of 68 percent to the stock’s last close. Servier expects to fund the transaction through existing cash and investments.

Upon completion, the acquisition will reinforce Servier’s position in oncology targeted therapies in line with its 2030 ambition to develop innovative treatments for patients with high unmet medical needs. It will also strengthen Servier’s portfolio and expand its oncology pipeline with programmes ranging from early stage to phase three.

Importantly, the deal gives Servier access to Day One’s Ojemda, the only ⁠US Food and Drug Administration-approved monotherapy for pediatric low-grade glioma, the ​most common form of brain tumor in children. Ojemda was approved in 2024 in patients whose tumors progressed after prior treatment. ‌It ⁠is now being tested as a first-line therapy, with trial results expected in the second half of 2027.

“This transaction reflects our long-term commitment to investing in science that can make a meaningful difference for patients,” said Olivier Laureau, president of Servier. “It is fully aligned with our 2030 ambition, and we believe that combining our expertise will accelerate innovation for people living with a rare cancer.”

According to Day One, Servier’s dedication to the rare disease community preserves the patient-first mindset that has defined Day One and driven its deep commitment to the communities it serves.

“Servier's successful track record in rare cancers and its commitment to advancing targeted therapies makes it the ideal home for our portfolio as part of Day One’s mission to bring medicines to patients of all ages with life threatening diseases,” said Jeremy Bender, chief executive of Day One. “Joining Servier represents a unique opportunity to extend the reach of our science and our lead program in pediatric low-grade glioma.”

The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2026.

Mr Laureau concluded: “The acquisition of Day One Biopharmaceuticals marks another decisive step in strengthening Servier’s position in rare oncology.”

News: Servier to buy Day One Biopharma for $2.5 billion in tumor treatment push

Azul Airlines emerges from Chapter 11

BY Fraser Tennant

Marking a pivotal moment in the company's transformational journey, Brazilian airline Azul has completed its voluntary financial restructuring process and emerged from Chapter 11 bankruptcy protection.

The airline, which filed in May 2025 citing pandemic-related debt and operational costs, has strengthened its balance sheet, enhanced liquidity, reduced lease expense and liabilities, and improved every aspect of its operations to support long-term sustainability and sustainable growth.

Azul’s restructuring was supported by key financial stakeholders, including its existing bondholders, its largest lessor AerCap (representing the majority of the company's aircraft lease liability) and other lessors, original equipment manufacturers, and suppliers counterparties, and its strategic partners, United Airlines and American Airlines.

“This is a defining milestone for Azul,” said John Rodgerson, chief executive of Azul. “In just under nine months, we completed a comprehensive restructuring that has materially strengthened our balance sheet and positioned Azul for long-term stability. We are emerging from Chapter 11 with the support of some of the most respected financial and strategic partners in global aviation.”

This support includes $850m of new equity investments at emergence, including from existing bondholders and $100m from United Airlines, as well as commitment with American Airlines for an incremental $100m equity investment, subject to antitrust approval.

With a strengthened financial position and the continued support of its stakeholders, Azul is entering its next phase from a position of strength, and remains focused on connecting Brazil like no other airline while delivering industry-leading service, reliability and value to customers.

The largest airline in Brazil in terms of cities served, Azul offers more than 800 daily flights to 137 destinations. With an operational fleet of around 200 aircraft and over 15,000 crew members, the company operates a network of 250 direct routes.

Ranked by aviation data analytics company Cirium as the second most punctual airline in the world in 2023, Azul was also lauded as the best airline in the world by TripAdvisor in 2020, marking the first time a Brazilian airline achieved first place in the Traveler's Choice Awards.

“I am especially proud of our crew members, whose dedication and resilience allowed us to continue operating at a high level throughout this process,” added Mr Rodgerson. “Their unwavering commitment to our customers ensured Azul never lost focus on what matters most: connecting Brazil with excellence and reliability.”

News: Azul completes Chapter 11 restructuring, reduces debt by $2.5 billion

BlackRock and EQT led consortium agrees $33.4bn AES deal

BY Richard Summerfield

In a landmark deal in the power and utilities space, a consortium led by BlackRock’s Global Infrastructure Partners and Swedish private equity firm EQT AB have agreed to acquire US power company AES Corp for around $33.4bn, including debt.

The deal will see the consortium, which also includes the California Public Employees’ Retirement System ⁠and ​the Qatar Investment Authority, acquire AES for $15 per share in cash, representing a total equity value of $10.7bn and an enterprise value of approximately $33.4bn, including the assumption of existing debt. The transaction represents a 40.3 percent premium to AES’s 30-day volume weighted average share price prior to 8 July 2025, the last full day of trading prior to the first media report of a potential acquisition.

The transaction has been unanimously approved by AES’ board of directors and is expected to close in late 2026 or early 2027, subject to approval by AES stockholders, the receipt of applicable federal, state and foreign regulatory approvals and the satisfaction of other customary closing conditions.

In the absence of a transaction, AES said it would have had to reduce or eliminate dividend payments or make substantial ​new equity issuances. The agreement includes reciprocal termination fees. The consortium will ​pay $100m or ⁠up to about $588m, while AES will pay roughly $321m under specified terms. Upon completion, AES’ units in Indiana and Ohio will remain locally operated and managed utilities.

“Following a rigorous review of strategic options, the AES Board determined that this transaction with the Consortium maximizes value for stockholders and provides compelling cash value,” said Jay Morse, chairman of the board at AES. “We ran a robust process that included several parties and evaluated the transaction with the Company’s standalone prospects in mind. AES has a significant need for capital to support growth beyond 2027, particularly given the significant new investments in both US generation and utilities businesses. In the absence of a transaction with the Consortium, the Company would likely require a plan that includes reduction or elimination of the dividend and/or substantial new equity issuances. After extensive work and deliberation, we concluded that this transaction is in the best interest of AES stockholders.”

“Over the course of our 45-year history of powering industries and shaping the future of energy, AES has built a diverse portfolio to meet the evolving power needs of our customers and communities,” said Andrés Gluski, president and chief executive of AES. “We believe this transaction maximizes value for existing stockholders and positions the Company for long-term success as we continue delivering on our commitments to customers, communities and people. We look forward to partnering with the Consortium, which has expressed an appreciation for the value of AES’ innovation, global reach and diverse portfolio.”

“We are excited to announce our acquisition of AES, a market leader in the power generation and supply business with a long and storied history,” said Bayo Ogunlesi, chairman and chief executive officer of Global Infrastructure Partners. “AES is a leader in competitive generation, and at a time in which there is a need for significant investments in new capacity in electricity generation, transmission and distribution, especially in the United States of America, we look forward to utilizing GIP’s experience in energy infrastructure investing, as well as our operational capabilities to help accelerate AES’ commitment to serve the market needs for affordable, safe and reliable power.”

“As one of the largest energy infrastructure investors globally, we are seeing first-hand the increasing need for a secure energy supply amid expanding power demand worldwide,” said Masoud Homayoun, head of EQT Infrastructure. “EQT’s acquisition of AES will support the growth and modernization of essential energy infrastructure that underpins energy security, electrification, digitalization and resilient power systems across key markets. We look forward to working with the AES team to strengthen its operating platform, including enhancing reliability and long-term competitiveness, while supporting a responsible and sustainable energy transition.”

News: BlackRock, EQT-led group seals $33.4 billion AES deal in bet on AI power boom

Spirit agrees Chapter 11 exit plan

BY Richard Summerfield

Spirit Airlines expects to emerge from Chapter 11 bankruptcy in late spring or early summer after reaching an agreement in principle with its existing debtor‑in‑possession lenders and secured noteholders. According to a company statement, this agreement will provide the financial support required to complete its restructuring and finalise changes intended to optimise its fleet, network and cost base. Spirit aims to return to the market as a strengthened low‑cost carrier offering both basic and premium options at the lowest possible fares.

Following its second bankruptcy filing in a year, the airline intends to reshape its business by expanding premium seating and focusing on routes with consistently strong demand. Under the restructuring plan, Spirit estimates that its debt and lease obligations will fall from $7.4bn to $2.1bn dollars. Spirit’s lawyer, Marshall Huebner of Davis Polk, confirmed that secured lenders will also release cash collateral to provide additional liquidity. The company entered bankruptcy again in August after experiencing falling cash reserves and ongoing losses.

“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” said Dave Davis, president and chief executive of Spirit. “Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay.

“I am grateful to our Team Members for their dedication and unwavering commitment to our Guests throughout our restructuring. I also want to thank our Guests for continuing to choose Spirit to connect them to the people and places that matter most,” he added.

As part of its recovery, Spirit will reconfigure its schedule to increase aircraft utilisation during peak periods and on consistently popular routes, while reducing activity during times of lower demand. The carrier also plans to expand Spirit First and premium economy offerings and make improvements to its loyalty programme. Much of the future fleet will consist of older Airbus aircraft. Mr Huebner stated that annual fleet costs are expected to fall by $550m, a reduction of around 65 percent compared with levels before last year’s bankruptcy filing. The airline’s debtors are also pursuing a further $300m in non‑fleet cost savings.

To contain expenses during restructuring, Spirit has already reduced the size of its Airbus fleet and furloughed pilots and flight attendants, some of whom have since been recalled. The airline has faced persistent financial pressure as a result of a major Pratt & Whitney engine recall and the collapse of a planned acquisition by JetBlue Airways, which was blocked by a federal judge in early 2024.

Although Spirit forecast a net profit of $252m for 2025 in a December 2024 court filing, it reported losses of nearly $257m between 13 March 2025, when it exited its first Chapter 11 process, and the end of June. The company filed for bankruptcy protection for a second time shortly afterwards.

News: Spirit seals deal with lenders to emerge from bankruptcy as smaller airline

Gilead Sciences acquires Arcellx in $7.8bn deal

BY Fraser Tennant

In its largest deal since 2020, US biopharmaceutical company Gilead Sciences is to acquire cancer therapy developer Arcellx for approximately $7.8bn.

Under the terms of the definitive agreement, Gilead will pay $115 per share in cash at the deal's closing, which is at a premium of 79 percent to the stock's last close. The agreement also includes one contingent value right of $5 per share.

Since 2022, Kite, a Gilead company, and Arcellx have had an existing collaboration to co-develop and co-commercialise Arcellx’s lead pipeline candidate, anito-cel, an investigational CAR T-cell therapy – a cancer treatment that uses a patient's own genetically modified immune cells to find and kill cancer cells – for patients with multiple myeloma, a type of blood cancer.

In clinical studies to date, anito-cel has demonstrated deep and durable responses with a predictable and manageable safety profile, addressing key challenges associated with current CAR T-cell therapies in multiple myeloma.

The US Food and Drug Administration (FDA) is currently reviewing the therapy, with a decision expected by 23 December 2026. Upon FDA approval of anito-cel, the proposed transaction is expected to be accretive to earnings per share in 2028 and thereafter.

“This agreement reflects our conviction in the potential of anito-cel and our intention to move with speed so we can make the most of that potential for patients with multiple myeloma,” said Daniel O’Day, chairman and chief executive of Gilead Sciences. “Anito-cel could become a foundational treatment for multiple myeloma over time, including earlier lines of therapy.”

In addition to anito-cel, Arcellx’s D-Domain CAR technology platform has generated proprietary, target-binding domains with improved specificity and enhanced binding affinity that could potentially be used for next-generation CAR T-cell and bispecific therapies.

“The story of Arcellx is one of innovation, passion, resilience and teamwork,” said Rami Elghandour, chairman and chief executive of Arcellx. “I could not be prouder of our team, our contribution to the myeloma field, and the impact anito-cel and our D-Domain platform are poised to have for patients and clinicians.

“We are fortunate to have found a world-class partner in Gilead, which has the expertise to carry forward Arcellx’s legacy,” he continued. “Kite is well-positioned to maximise access to anito-cel, benefiting more patients, and the company’s commitment to be the leader in cell therapy is one I admire.”

The transaction has been approved by both the Gilead and Arcellx boards of directors and is anticipated to close during the second quarter of 2026, subject to the satisfaction or waiver of customary closing conditions.

Mr Elghandour concluded: “I am grateful to our board of directors, our shareholders, our partners and the patients and physicians who participated in our studies, and most of all, our team members who did the impossible and left an indelible mark on the future of medicine.”

News: Gilead to acquire cancer therapy developer Arcellx for up to $7.8 billion