4 big deal reports: Amgen-Horizon merger on the ropes

Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this week: potential block of Horizon/Amgen transaction, merger deals at Magellan Midstream/Oneok and Urstadt Biddle/Regency Centers, and New Relic’s potential $5B acquisition.

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FTC expected to sue to block Horizon/Amgen merger deal

Horizon Therapeutics (NASDAQ:HZNP) shares plunged more than 14% on Tuesday after the report that the U.S. Federal Trade Commission (FTC) is expected to introduce a lawsuit to block the proposed $27.8 billion merger with Amgen (NASDAQ:AMGN).

The FTC is concerned about the overlap in the portfolios of the companies, specifically regarding Lupus and Eczema treatments. Hence, the merger would harm the development of drugs in these areas.

Amgen expressed its disappointment with the decision, noting that the medicines offered by Amgen and Horizon generally treat different diseases and patient populations, and there are no overlaps of competitive concern. According to Amgen, the FTC's remark that it may "bundle" these medicines in the future is entirely speculative and does not reflect the real-world competitive dynamics behind providing rare-disease medicines to patients.

Horizon shares closed the week with more than a 9% loss, while Amgen fell around 3%.

Magellan Midstream surges on Oneok acquisition announcement

Magellan Midstream Partners (NYSE:MMP) shares jumped nearly 13% on Monday after ONEOK (NYSE:OKE) announced it will acquire the company in a cash-and-stock deal valued at $18.8B, as InvestingPro reported in real time.

The total enterprise value of the combined company is expected to be $60B. The transaction is expected to close in Q3/23.

According to Oneok CEO Pierce Norton, the combination will form a diverse North American midstream infrastructure company with primarily fee-based earnings, a robust balance sheet, and enhanced financial flexibility.

Still, Oneok shares fell around 9% on Monday as some analysts said that investors may prefer the company to keep its focus on natural gas.

New Relic stock jumps 10% on Francisco Partners & TPG acquisition news

Private-equity firms Francisco Partners and TPG (NASDAQ:TPG) are collaborating on a bid exceeding $5B to acquire software company New Relic (NYSE:NEWR), according to a WSJ report, citing people familiar with the matter.

New Relic shares jumped more than 10% on Thursday following the news.

The deal, if successful, is anticipated to be finalized within the upcoming weeks, but there is a possibility that the negotiations might collapse, leading to the emergence of other potential buyers.

Urstadt Biddle jumps 28% on Regency Centers acquisition announcement

Urstadt Biddle (NYSE:UBP) shares surged more than 28% on Thursday following the acquisition announcement by Regency Centers (NASDAQ:REG). The all-stock transaction is valued at approximately $1.4B, including the assumption of debt and preferred stock.

The combined company is expected to have a total enterprise value of approximately $16B.

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