Deal Dispatch: Clock Ticks On TikTok, Raizen Explores Asset Sale, Investors Urge Walgreens To Go Private

Anthony Noto

March 7, 2025

Benzinga

New On The Block

Raizen, a Brazilian joint venture between Shell plc (NYSE:SHEL) and Cosan SA (NYSE:CSAN), tapped JPMorgan to shop around its Argentinian oil refinery and gas stations network. Bloomberg recently reported that the company is undergoing a "profound" portfolio revision, citing CEO Nelson Gomes‘s comments to analysts during an earnings call.

Updates From The Block

Walgreens Boots Alliance (NASDAQ:WBA) may be heading to the private sector, thanks to a $10 billion deal with Sycamore Partners. The transaction, approved by Walgreens’ board, offers shareholders $11.45 per share in cash. Gary Black of The Future Fund LLC shared the news on social media, quipping, "I've talked before about how this company shouldn't be public." And who's pulling the strings? Executive chairman Stefano Pessina, who owns a 16.9% stake and clearly decided it was time to take his pharmacy empire out of the public eye.

President Donald Trump wants a U.S. sovereign wealth fund to buy TikTok‘s U.S. business. That’s a bit like suggesting that a college student who is knee-deep in loans save up for a private jet. U.S. debt is exorbitant and the Trump administration is (they say) focused on reducing it. However, Reuters is reporting that Morgan Stanley‘s Michael Grimes, who helped steer the Uber IPO and the Twitter takeover, is overseeing the formation of a sovereign wealth fund for Uncle Sam. But with TikTok’s April 5 deadline looming, time is of the essence. Tick tock. Pun intended.

Sure, a deal could get signed by then, but each passing day makes it feel more like a Hail Mary pass—except this time, instead of catching a football, the U.S. is hoping to catch a lip-syncing, trendsetting social media giant.

Meanwhile, Onsemi (NASDAQ:ON) upped its bid for Allegro MicroSystems, Inc. (NASDAQ:ALGM) to acquire the company for $35.10 per share, valuing the deal at $6.9 billion. This represents an increase over an initial $34.50 per share proposal submitted on Sept. 2.

Off The Block

American Express (NYSE:AXP) agreed to acquire Bellevue, Wash.-based Center, according to Bloomberg. Center is a software provider backed by Durable Capital Partners, Top Tier Capital Partners and Mango Capital.

Bankruptcy Block

Canoo, the electric vehicle startup that never quite got rolling, is getting a reboot—from its own CEO, no less. Anthony Aquila is buying nearly all of Canoo's assets out of bankruptcy for $4 million in cash, per TechCrunch. The sale is expected to erase the $11 million debt Canoo owes to a financial firm… conveniently run by Aquila himself. Canoo filed for Chapter 7 liquidation just six weeks ago. Government contracts with NASA and the Department of Defense bore little fruit. The startup has roughly $145 million in assets but $175 million in liabilities. Now, other buyers can still throw their hats in the ring before March 28.

Notes From The Block

So much for the wave of M&A dealmakers expected with Trump’s return to the White House.

They banked on looser regulations and a more vibrant stock market. So far, neither scenario has come to fruition. According to Dealogic, U.S.-based M&A volume is down about 29% compared to this timeframe in 2024.

Consider the Federal Trade Commission’s (FTC) latest move. The agency, with a Trump appointee at the helm, is throwing a wrench into a private equity firm's plan to acquire Surmodics Inc (NASDAQ:SRDX), a company that specializes in drug delivery and in vitro diagnostic technologies.

The buyer, GTCR, already owns Biocoat, a Surmodics rival. Owning both would give them over 50% market control and the ability to squash competition. And the cost of the tech would indeed hurt the consumer. Since it's unlikely a new competitor would rise to challenge the dynamic duo of Biocoat and Surmodics, the FTC has taken the matter to court in the Northern District of Illinois.

For those surprised that the Trump administration isn’t letting this merger slide, recall his first term when the Department of Justice blocked deals between AT&T and Time Warner; Sinclair and Tribune Media; Broadcom and Qualcomm as well as DraftKings and FanDuel.

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