Deal Dispatch: Shell, Unilever And More Are On The Sell…

New On The Block

Evolent Health Inc EVH is reportedly up for sale. The Arlington, Virginia-based software provide initiated an auction process after receiving takeover inquiries. Among the potential suitors are TPG Inc TPG, Clayton, Dubilier & Rice, and KKR & Co. Inc. KKR. Reuters reported that health insurer Elevance Health Inc ELV may join forces with a private equity partner to pursue a deal.

Kronos Bio Inc KRON, a company focused on developing therapies for cancer, is exploring “strategic alternatives,” including an acquisition or merger.The San Mateo, Califonia-based company reported $124.9 million in cash reserves as of Sept. 30.

Saint-Gobain SGO is considering a sale of its auto glass unit, which could fetch up to 2.5 billion euro ($2.6 billion), per Bloomberg. The company is reportedly considering this strategic move as part of its broader business evaluation. This sale aligns with Saint-Gobain’s efforts to streamline its operations and focus on core business areas.

Shell SHEL is seeking to jettison a majority of its carbon offsets portfolio. The company first launched the portfolio of offsets, which covers dozens of projects, in 2018.

Unilever ULVR is exploring the sale of some Dutch food brands, including Unox soups and Conimex seasonings. According to Reuters, the company will instead focus on its biggest “power” labels.

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Bankruptcy Block

Alex Jones’s media company, Infowars, is now the property of satirical publication The Onion. The publication’s backers were none other than the families of Sandy Hook victims. Observers praised the deal as poetic justice, considering Jones owes over $1 billion in defamation judgments against those families. Jones, who has garnered sympathy from right-wing personalities like Elon Musk and Tucker Carlson, confirmed the acquisition in a visibly distressed social media video, blaming “Democrats.”

Diamond Sports Group‘s restructuring will include reducing its debt from nearly $9 billion to $200 million, ESPN reports. The restructuring plan received what Diamond categorized as “nearly unanimous support” from debt holders. Diamond, currently possessing $100 million in liquidity, will emerge from bankruptcy and operate as a stand-alone entity. Sinclair, the parent company, took on $8 billion in debt to buy regional channels from Fox for $10.6 billion in 2019. That debt contributed to Diamond’s bankruptcy.

Updates From The Block

Currently, there are no concrete indications that Humana Inc. HUM is actively pursuing a sale. Recent speculation regarding Humana being acquired by Cigna Group CI was definitively addressed, with Cigna explicitly stating that it is not pursuing a merger with Humana at this time. This clarification came after rumors reignited post-election, driven by the potential for more lenient antitrust reviews under the new Republican administration and Congress.

Spirit Airlines SAVE is no longer in deal talks with Frontier Airlines ULCC. It’s now in advanced discussions with bondholders to finalize a bankruptcy plan. The carrier continues to struggle with mounting losses and looming debt maturities. A bankruptcy filing is expected to happen within weeks, according to the Wall Street Journal.

MEI Pharma, Inc. MEIP continues to explore M&A opportunities, hiring Oppenheimer & Co., Inc. as an exclusive financial advisor to assist the process. During the first quarter of fiscal year 2025, the company commenced cash preservation efforts that include a reduction-in-force, which will continue in stages as the Company’s operational and strategic direction evolves.

Notes From The Block

Wall Street anticipates a surge in M&A as Republicans take control of Congress and deregulate. Analysts expect Federal Trade Commission Chair Lina Khan‘s removal, which could ease antitrust scrutiny. Bank of America highlights that Republican administrations, like President-elect Donald Trump‘s, historically foster over 50% more financial sector M&A activity compared to Democratic ones.

Bank of America also predicts that 2025 could mark a better year for M&A as rate cuts take effect and economic conditions stabilize. Here’s a list of five potential targets the bank compiled. For the full list, click here.

For last week’s Deal Dispatch, click here.

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