TenneT agrees $11.3bn unit sale

BY Richard Summerfield

The Dutch government has agreed to sell 46 percent of its stake in TenneT Holding’s German unit to a consortium of investors for up to $11.3bn.

Under the terms of the deal, the government has agreed to divest its holdings in the unit to three large institutional investors in Europe, APG (investing on behalf of Dutch pension fund ABP), Singapore sovereign wealth fund GIC and Norges Bank Investment Management (NBIM). The three parties will eventually acquire approximately 46 percent of the shares in TenneT Germany.

According to a statement announcing the deal, the transaction gives TenneT Germany an enterprise value of approximately €40bn on a cash and debt free basis, implying an enterprise value to regulatory asset base multiple of 1.09, and a pre-money equity value of €10.4bn as of 31 December 2025.

TenneT Germany manages a large part of the German onshore and offshore electricity grid. The company is a subsidiary of TenneT Holding, which is wholly owned by the Dutch state. As a result of an extensive investment agenda for the energy transition, TenneT Germany has a large equity need. To meet this need, the German government decided in 2024 to allow private investors to participate. The Dutch state will, via TenneT Holding, remain the largest shareholder in the German unit once the deal has completed.

“We are truly pleased to have achieved a structural solution for TenneT Germany’s equity need and I eagerly look forward to partnering with these highly reputable investors,” said Manon van Beek, chief executive of TenneT Holding. “With this financing solution, TenneT remains Europe’s leading crossborder TSO, a key player in system integration, offshore wind connections and market innovation. This announcement marks the end of an intense period during which we have separated our Dutch and German operations within the group, implemented a new funding structure for TenneT Netherlands and secured equity funding for TenneT Germany. I am proud of all my colleagues and our close collaboration with the Dutch Ministry of Finance throughout the process. We will continue our full focus on securing access to reliable, sustainable and affordable electricity supply.”

“This investment serves multiple strategic goals,” said Ronald Wuijster, chief executive of APG Asset Management. “By acquiring a stake in TenneT Germany – a stable, regulated infrastructure asset in an AAA-rated country – we secure a relatively low-risk investment with stable long-term cashflows for our client ABP and our partners. Additionally, it is an impact investment which supports Sustainable Development Goal 7 (Affordable and Clean Energy) and strengthens Europe’s infrastructure autonomy. This shows our expertise in large-scale infrastructure deals and our commitment towards helping our clients and partners reach their goals.”

“GIC is excited to be a part of the next phase of TenneT Germany’s growth,” said Boon Chin Hau, chief investment officer, infrastructure at GIC. “We look forward to partnering with NBIM, APG, TenneT Holding and TenneT Germany to ensure TenneT Germany remains a leading transmission system operator. As a long-term investor, GIC is confident that with Germany’s collaborative and transparent approach to regulation, TenneT Germany will continue to play an important role in Europe’s continued, strong push towards decarbonization.”

“This investment demonstrates our commitment to financing the energy transition,” said Harald von Heyden, global head of energy & infrastructure at NBIM. “We are excited to partner with TenneT Holding, APG and GIC to support the growth of TenneT Germany. TenneT Germany’s transmission grid is essential for delivering renewable energy where it’s needed in Europe’s largest economy.”

News: Dutch government sells nearly half of TenneT Germany for $11.3 billion

Roche to acquire 89bio in $3.5bn transaction

BY Fraser Tennant

In a deal that enhances its portfolio in cardiovascular, renal and metabolic diseases (CVRM), Swiss biopharmaceutical and diagnostic company Roche is to acquire UD drugmaker 89bio for $3.5bn.

Under the terms of the definitive agreement, Roche will acquire all of the outstanding shares of 89bio common stock at a price of $14.50 per share in cash at closing, plus a non-tradeable contingent value right to receive certain milestone payments of up to an aggregate of $6.00 per share in cash.

The combination underscores Roche’s dedication to advancing innovative therapies in CVRM diseases, especially for patients affected by overweight, obesity and related health challenges such as moderate to severe metabolic dysfunction-associated steatohepatitis (MASH).

In acquiring 89bio, including its lead CVRM treatment pegozafermin, Roche is fostering its activities to build a robust and differentiated pipeline that targets additional causes of metabolic disease.

“This acquisition further strengthens our portfolio in cardiovascular, renal and metabolic diseases and offers opportunities to explore combinations with existing programmes in our pipeline,” said Thomas Schinecker, chief executive of the Roche Group. “We are highly encouraged by pegozafermin’s potential to become a transformative treatment option in MASH, one of the most prevalent comorbidities of obesity, and to meet diverse patient needs associated with this complex disease.”

The merger agreement has been unanimously approved by the boards of directors of Roche and 89bio.

“Our mission at 89bio has always been to develop innovative therapies to help patients with serious liver and cardiometabolic diseases,” said Rohan Palekar, chief executive of 89bio. “We are thrilled to be joining with Roche to combine the promise of pegozafermin with Roche’s established global development, manufacturing and commercialisation capabilities, to accelerate and maximise potential benefit for patients in need and unlock significant shareholder value.”

The transaction is expected to close in the fourth quarter of 2025. It is subject to customary closing conditions, including the tender of at least a majority of the outstanding shares of 89bio’s common stock and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Boris L. Zaïtra, head of corporate business development at Roche, concluded: “We are excited about this agreement and to further develop this promising therapy, which we hope will provide people with moderate to severe MASH a new treatment option.”

News: Roche to acquire liver drug developer 89bio for up to $3.5 billion

SpaceX buys EchoStar’s spectrum licences in $17bn deal

BY Fraser Tennant

US space technology company SpaceX is to acquire wireless spectrum licences from mobile satellite communication services provider EchoStar in a transaction valued at approximately $17bn.

Under the terms of the definitive agreement, the licences will be sold for up to $8.5bn in cash and up to $8.5bn in SpaceX stock. The agreement also provides for SpaceX to fund an aggregate of approximately $2bn of cash interest payments payable on EchoStar debt through November 2027.

The acquisition of EchoStar’s AWS-4 and H-block licences is seen by SpaceX as crucial to the expansion of its Starlink satellite network’s 5G connectivity business.

In connection with the transaction, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers – through its cloud-native 5G core – to access SpaceX’s next generation Starlink ‘Direct to Cell’ service.

“For the past decade, we have acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates,” said Hamid Akhavan, president and chief executive of EchoStar. “The combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX allows us to realise the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide.”

The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.

The deal comes months after the Federal Communications Commission questioned EchoStar’s use of mobile-satellite service spectrum and raised concerns about whether it was meeting its obligations to deploy 5G in the US. EchoStar anticipates that the transaction with SpaceX and its previous deal with AT&T will resolve the FCC’s inquiries.

“This transaction with EchoStar will advance our mission to end mobile dead zones around the world,” said Gwynne Shotwell, president, chief executive and chief operating officer of SpaceX. “SpaceX's first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most – during natural disasters so they could contact emergency responders and loved ones – or when they would have previously been off the grid.”

The closure of the proposed transaction is expected to occur after all required regulatory approvals are received and other closing conditions are satisfied.

Mr Akhavan concluded: “This transaction with SpaceX continues our legacy of putting the customer first.”

News: SpaceX buys wireless spectrum from EchoStar in $17 billion deal

PNC agrees $4.1bn FirstBank deal

BY Richard Summerfield

American financial services firm PNC Financial Services has agreed to acquire its smaller rival FirstBank Holding in a $4.1bn cash-and-stock deal.

Under the terms of the deal, FirstBank stockholders will be entitled to elect to receive the merger consideration in PNC common stock or in cash, subject to certain limitations. The aggregate consideration is comprised of a fixed number of approximately 13.9 million shares of PNC common stock and $1.2bn in cash and implies a transaction value of $4.1bn.

The boards of directors of both PNC and FirstBank Holding Company have approved the transaction, which is expected to close in early 2026, subject to receipt of all required approvals and other customary closing conditions. Following the closing, FirstBank will be merged into PNC Bank, N.A. when PNC is prepared to convert FirstBank customers to the PNC platform, with FirstBank branches assuming the PNC Bank name.

“FirstBank is the standout branch banking franchise in Colorado and Arizona, with a proud legacy built over generations by its founders, management, and employees,” said William S. Demchak, chairman and chief executive of PNC. “Its deep retail deposit base, unrivaled branch network in Colorado, growing presence in Arizona, and trusted community relationships make it an ideal partner for PNC.”

“For decades, FirstBank has been proud to serve Colorado and Arizona with a strong community focus, deep customer relationships and dedicated commitment to our employees,” said Kevin Classen, chief executive of FirstBank. “In PNC, we have found a partner that not only values this legacy but is committed to building on it. Their scale, technology and breadth of financial services will allow us to offer even more to our customers, while ensuring that our employees and communities continue to thrive.”

Upon completion, PNC plans to retain all of FirstBank’s branches and FirstBank’s customer-facing branch teams, ensuring continuity for customers, employees and the communities FirstBank serves.

FirstBank, which began offering banking services in 1963, manages $26.8bn in assets and operates 95 branches. The deal will bring PNC closer to $600bn in assets. PNC was formed in 1983 from the merger of Pittsburgh National Corporation and Provident National Corporation. It has $559bn in assets and operates about 2300 branches providing a mix of consumer and commercial banking services. It is smaller than the country’s four biggest banks – Chase, Bank of America, Citigroup and Wells Fargo, but larger than most regional banks, leading some to call it a ‘super-regional’.

News: PNC strengthens Colorado, Arizona presence with $4.1 billion FirstBank deal

Kraft Heinz to split into two public companies

BY Richard Summerfield

A decade after it was formed, American multinational food company Kraft Heinz has announced it is to split into two independent, public businesses.

The spin off of the two companies, which is expected to close in the second half of 2026, will see one company selling Heinz ketchup and the company’s other condiments and boxed meals, which comprise its fastest-growing global brands with $15.4bn in annual sales. The other firm will include slower-growing grocery products, which currently generate revenue of $10.4bn. The names of the two new companies are yet to be determined, but are provisionally called Global Taste Elevation Co and North American Grocery Co, respectively.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board at Kraft Heinz. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”

“This move will unleash the power of our brands and unlock the potential of our business,” said Carlos Abrams-Rivera, chief executive of Kraft Heinz. “This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”

The 2015 merger of Kraft and Heinz, engineered by veteran US investor Warren Buffett and Brazilian private equity firm 3G Capital, created a $45bn multinational, which is now to be undone. The move follows in the footsteps of a number of other food and drink companies, including Kellogg’s, which broke into two firms in 2023, and Keurig Dr Pepper, which recently said it would undo a 2018 deal that brought together its coffee and beverage businesses. 3G Capital quietly exited its Kraft Heinz investment in 2023, after years of periodically trimming its stake as the company struggled.

Following the announcement of the split, Mr Buffet expressed his disappointment in the decision. Mr Buffet is the outgoing chairman and chief executive of Berkshire Hathaway, which has a 27.5 percent stake in the Kraft Heinz, making it the company’s largest shareholder.

Heinz was founded by Henry J Heinz in Pittsburgh in 1869 to specialise in sauces and condiments. Kraft grew out of a wholesale cheese delivery business set up in Chicago by James L Kraft in 1903. Three years before the merger, Kraft spun off its snack division, which was renamed Mondelez International.

News: Kraft Heinz splits, unwinding disappointing merger