Adobe & Figma terminate merger, Nippon Steel to buy U.S. Steel: 4 big deal reports

Investing.com — Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this week: Adobe Systems and Figma mutually agree to terminate merger, Nippon Steel to acquire U.S. Steel, Warner Bros. Discovery and Paramount in merger talks, and Aon to acquire NFP.

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Adobe Systems and Figma mutually agree to terminate merger agreement

Adobe Systems (NASDAQ:ADBE) and Figma mutually agreed to call off their previously planned merger, as revealed in a press statement on Monday.

Initially made public on September 15, 2022, the proposed acquisition of Figma by Adobe was to be carried out through a mix of cash and stock transactions. However, this agreement will no longer be pursued, as stated by both companies.

This joint decision to abandon the merger implies a strategic reconsideration or a change in circumstances, leading both companies to reevaluate the benefits and feasibility of the merger. The deal had not secured the required approvals from regulatory bodies such as the European Commission and the UK Competition and Markets Authority.

“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Shantanu Narayen, chair and CEO, Adobe.

Nippon Steel to acquire U.S. Steel for $14.1 billion

Japan's Nippon Steel (TYO:5401) announced its acquisition of the United States Steel (NYSE:X), commonly known as U.S. Steel. The deal involves an all-cash payment of $55 per share, valuing U.S. Steel at $14.1 billion. With debt inclusion, the total enterprise value of the transaction reaches $14.9B.

Following the announcement, the rating agency S&P placed Nippon Steel's 'BBB+' long-term issuer credit rating on a negative credit watch. The acquisition, which involves a significant cash transaction of $14.9 billion, is expected to markedly weaken Nippon Steel's financial standing due to a substantial rise in investment-related debt.

In contrast, Fitch Ratings has placed U.S. Steel on a Rating Watch Positive. The agency cited the anticipated enhancement in size and earnings of the combined entity post-acquisition as the reason for this positive outlook.

The White House has called for "serious scrutiny" of the Nippon-U.S. Steel deal. Given U.S. Steel's vital role in domestic steel production and its implications for national security, the White House is advocating for a thorough review by the Committee on Foreign Investment in the United States (CFIUS) and potentially by antitrust authorities.

Warner Bros. Discovery and Paramount in merger talks

Warner Bros Discovery (NASDAQ:WBD) experienced a sharp decline in its share prices on Wednesday, following a report by Axios that the company is in preliminary discussions with Paramount Global (NASDAQ:PARA) about a possible merger.

According to the report, which cites multiple sources, the CEOs of both companies recently met in New York City to explore this potential merger. The proposed merger between Warner Bros. Discovery and Paramount Global could establish a major powerhouse in the news and entertainment industry, potentially triggering more mergers and consolidations within the sector.

Wolfe Research analyst Peter Supino sees a "high" synergy potential. "The combined companies' share of TV, movies, and streaming, according to a recent trade press comment, would exceed 28% and stand above Disney," the analysts said.

Aon to acquire NFP for $13.4B

Aon (NYSE:AON) agreed to a deal to acquire NFP, a middle-market property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor. The acquisition, valued at an estimated $13.4B at the time of closure, will involve $7B in cash and $6.4B in Aon stock.

NFP is being acquired from funds associated with its primary capital sponsor, Madison Dearborn Partners, and funds affiliated with HPS Investment Partners.

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