4 big deal reports: Biogen shells out $7.3B for Reata Pharma

Investing.com -- Here is your Pro Recap of 4 head-turning deal dispatches you may have missed last week: merger deals at Biogen/Reata Pharmaceuticals, Banc of California/PacWest, Maxlinear terminates merger with Silicon Motion, and Volkswagen acquires minority stake in XPeng.

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Biogen to buy Reata Pharmaceuticals for $7.3 billion

Biogen (NASDAQ:BIIB) reached an agreement to acquire Reata Pharmaceuticals (NASDAQ:RETA) for $172.50 per share, or $7.3 billion, as reported in real time on InvestingPro.

Reata Pharmaceuticals recently obtained FDA approval for SKYCLARYS, the sole treatment available for patients with Friedreich's ataxia. Moreover, the company is actively developing a portfolio of innovative products designed to address various neurological conditions.

The deal should close in the fourth quarter of this year.

Reata Pharmaceuticals shares surged more than 54% on Friday on the announcement.

MaxLinear terminates $4 billion merger deal with Silicon Motion

MaxLinear (NASDAQ:MXL) announced that it will terminate its plan to acquire Taiwan-based memory controller-maker Silicon Motion (NASDAQ:SIMO). The deal, valued at nearly $4B, was agreed upon in May of last year, and would have created one of the largest fabless semiconductor suppliers in the world, as noted by Reuters.

Following news of the deal's cancellation Wednesday, MaxLinear's shares dropped nearly 13%. Conversely, Silicon Motion shares saw a leap of around 25%.

MaxLinear filed a Form 8-K citing various reasons for the termination, including unsatisfied conditions set forth in the agreement, continuing material adverse effects on Silicon Motion, and material breaches of the merger agreement by Silicon Motion.

Banc of California and PacWest announce a merger

Banc of California (NYSE:BANC) and PacWest Bancorp (NASDAQ:PACW) announced an all-stock merger transaction on Tuesday. PacWest stockholders will receive 0.6569 shares of Banc of California common stock for each share of PacWest common stock.

To support the merger, Banc of California entered into investment agreements with Warburg Pincus and Centerbridge Partners, totaling $400 million. This investment will be used alongside other actions to reposition the combined company's balance sheet and generate significant savings.

After closing and asset sales, the combined company is expected to have approximately $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits, and over 70 branches in California.

Upon completion of the transaction, PacWest stockholders will hold approximately 47% of the outstanding shares of the combined company, the investors from the equity capital raise will hold around 19%, and Banc of California shareholders will hold approximately 34%.

PacWest shares closed the week with more than a 2% loss, while Banc of California gained around 13%.

Volkswagen to take $700 million minority stake in XPeng

Volkswagen (ETR:VOWG_p) announced a strategic partnership with the Chinese electric vehicle manufacturer XPeng (NYSE:XPEV). Under this agreement, Volkswagen will make a substantial investment of approximately $700 million, acquiring about 4.99% of XPeng's outstanding shares.

The focus of their collaboration is to jointly develop two B-class battery electric vehicles designed for the Chinese market, utilizing XPeng's G9 platform and advanced Connectivity and ADAS software. Beyond vehicle development, both companies are also exploring potential partnerships in various sectors, including future EV platforms, software technologies, and supply chain management.

Following the announcement, XPeng shares surged more than 26% on Wednesday and closed the week with around 60% gain.

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