Hawaiian acquired by Alaska Air, AbbVie boasters portfolio: 4 big deal reports

Investing.com — Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this week: deals at Hawaiian and Alaska Air , AbbVie and Cerevel, Carrier Global selling security unit to Honeywell, and LyondellBasell Industries selling its Ethylene Oxide & Derivatives unit to INEOS Oxide.

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Hawaiian stock jumps following Alaska Air acquisition announcement

Shares of Hawaiian (NASDAQ:HA) experienced a significant surge on Monday, rising more than 192%, following the news that Alaska Air (NYSE:ALK) intends to acquire the airline for a total of $1.9 billion. The proposed deal includes a cash payment of $18 per share by Alaska Air, factoring in Hawaiian Airlines' existing net debt of $0.9 billion.

The companies foresee potential synergies from the acquisition, estimating a conservative figure of around $235 million in run-rate synergies. The completion of this acquisition is expected within the next 12 to 18 months.

Analysts highlighted the strategic rationale of the deal, emphasizing that it provides Alaska Air with international exposure and access to the Oneworld airline alliance. Despite the perceived benefits, analysts also cautioned that the deal may encounter regulatory resistance, citing the opposition faced by JetBlue's proposed merger with Spirit Airlines (NYSE:SAVE).

As a result, shares in Alaska Air dropped more than 14% on Monday.

AbbVie to acquire Cerevel for $8.7 billion

AbbVie (NYSE:ABBV) announced it will acquire Cerevel Therapeutics (NASDAQ:CERE), a move that will significantly bolster AbbVie's presence in the neuroscience sector. This acquisition will see AbbVie taking over Cerevel's extensive pipeline, which includes a variety of clinical-stage and preclinical neuroscience candidates.

Under the terms of the acquisition, AbbVie plans to buy all outstanding shares of Cerevel for $45.00 per share in cash, valuing Cerevel at approximately $8.7 billion in total equity.

"Our existing neuroscience portfolio and our combined pipeline with Cerevel represents a significant growth opportunity well into the next decade," said AbbVie CEO Richard Gonzalez.

The boards of directors of both entities have endorsed the deal. It is anticipated to conclude by mid-2024 pending approval from Cerevel's shareholders, regulatory clearances, and meeting other standard closing prerequisites.

Following this announcement, Cerevel's shares saw a notable increase, rising over 11% on Thursday.

Carrier Global shares surge after deal to sell security unit to Honeywell for $4.95B

Honeywell International (NASDAQ:HON) today announced its acquisition of the Global Access Solutions business of Carrier Global (NYSE:CARR) in an all-cash transaction valued at $4.95B.

Following this announcement, Carrier's shares experienced a notable rise of nearly 6% while Honeywell fell more than 2% pre-market today.

This strategic move is expected to be immediately accretive to Honeywell's cash-EPS in the first full year of ownership, contributing to growth, gross margins, and operating margins.

LyondellBasell Industries to sell its Ethylene Oxide & Derivatives unit for $700M

LyondellBasell Industries (NYSE:LYB) today announced it has agreed to sell its Ethylene Oxide & Derivatives (EO&D) business along with the production facility located in Bayport, Texas to INEOS Oxide. The agreed-upon sale price for this transaction is set at $700M.

The transaction is expected to close in the second quarter of 2024 following the completion of the planned maintenance at the facility and is subject to regulatory and other customary closing conditions.

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