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

ZIM Integrated Shipping sold for $4.2bn

BY Richard Summerfield           

Container shipping group Hapag-Lloyd has agreed to acquire its rival ZIM Integrated Shipping Services in a deal worth $4.2bn. The deal will consolidate Hapag-Lloyd’s position as one of the world’s biggest ocean shipping companies.

Under the terms of the deal, Hapag-Lloyd will acquire ZIM for $35 per share in cash. The total transaction represents an equity value of approximately $4.2bn, and the price per share represents a 58 percent premium to ZIM’s stock price on 13 February 2026, a 90 percent premium to ZIM’s 90-day volume-weighted average price and a 126 percent premium to ZIM’s unaffected stock price of $15.50 on 8 August 2025, prior to market speculation first emerging.

The transaction has been unanimously approved by ZIM’s board of directors and is expected to close by late 2026, subject to approval by ZIM shareholders and upon satisfaction of customary closing conditions, including approvals by regulatory authorities and the state of Israel pursuant to the requirements of the ‘special state share’.

“I am incredibly proud of the strategic transformation we have executed at ZIM over recent years, which has generated exceptional value for our shareholders,” said Eli Glickman, president and chief executive of ZIM. “Since I joined the Company in 2017, ZIM has progressed from a position of negative equity to become an industry leader with strong financial and operational performance. Since our IPO in January 2021, we have distributed an extraordinary $5.7 billion in dividends to shareholders. Upon completion of this transaction, total capital returned will be approximately $10 billion, representing more than five times the Company’s initial market value five years ago, or approximately 45 times the capital raised at the IPO.

Mr Glickman credited the company’s success to the professionalism and commitment of its team. He highlighted fleet modernisation with 46 new ships and ZIM’s early adoption of liquefied natural gas-powered vessels, now about 40 percent of its capacity. He also noted strategic investment of over $1bn since 2021 in vessels and equipment, growth in car carrier operations, and new LNG supply agreements with Shell. He further stressed ZIM’s leadership in digital tools, data analytics, business intelligence and AI, which enhance efficiency and customer experience.

“Our agility and proactive decision-making have enabled us to implement critical strategies that position ZIM as a market leader in container shipping, with industry-leading EBIT margins and making ZIM a compelling acquisition target,” added Mr Glickman.

“Today’s announcement is the culmination of a thorough strategic review carried out by ZIM’s Board of Directors,” said Yair Seroussi, chairman of the board at ZIM. “We believe this represents the most prudent and beneficial transaction for all ZIM stakeholders. The decision to enter into a transaction with Hapag-Lloyd reflects our commitment to maximizing value for shareholders through a competitive bidding process, while ensuring the best possible outcome for the Company, our employees and the State of Israel.”

“ZIM is an excellent partner for Hapag-Lloyd,” said Rolf Habben Jansen, chief executive of Hapag-Lloyd. “Customers will benefit from a significantly strengthened network on the Transpacific, Intra Asia, Atlantic, Latin America and East Mediterranean. We share the same ambitions: great customer service, outstanding operational quality, and a commitment to digital innovation – all powered by the expertise and passion of our people worldwide.

“We will use this opportunity to create the best team from the exceptional talent in ZIM and Hapag-Lloyd – in Israel and around the globe – and we commit ourselves to build a very substantial and long-term presence in Israel,” he continued. “Together, we will set new benchmarks of excellence and secure our position as the undisputed number one for quality in our industry”

News: Hapag-Lloyd buys Israel's ZIM Integrated Shipping for $4.2 billion

Texas Instruments acquires Silicon Labs in $7.5bn deal

BY Fraser Tennant

In a deal designed to expand its wireless connectivity and internet of things portfolio, US multinational semiconductor company Texas Instruments will acquire smart homes mixed-signal chipmaker Silicon Labs for approximately $7.5bn.

Under the terms of the definitive agreement, Texas Instruments will acquire Silicon Labs for $231 per share in an all-cash transaction – its biggest acquisition since the $6.5bn deal for National Semiconductor in 2011.

The combined company will create a global leader in embedded wireless connectivity solutions by combining Silicon Labs’ strong portfolio and expertise in mixed signal solutions with Texas Instruments’ leading analogue and embedded processing portfolio and internally owned technology and manufacturing capabilities.

“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, chairman, president and chief executive of Texas Instruments. “Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and intellectual property, enabling greater scale and allowing us to better serve our customers.

“Texas Instruments' industry-leading and internally owned technology and manufacturing is optimised for Silicon Labs' portfolio, and will provide customers dependable supply worldwide,” he continued. “I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments’ shareholders.”

The transaction – which is expected to generate $450m in annual manufacturing and operational synergies within three years post-close – has been unanimously approved by the board of directors of both companies.

“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way,” said Matt Johnson, president and chief executive of Silicon Labs. “Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices.”

The transaction is expected to close in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders.

“The opportunity ahead is significant for both Texas Instruments and Silicon Labs,” concluded Mr Johnson. “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”

News: Texas Instruments strikes $7.5 billion deal for Silicon Labs to boost wireless footprint

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