Palantir Technologies and Anduril Industries, two of the largest US defence technology firms, are reportedly in discussions with around a dozen other high-profile competitors, including OpenAI and SpaceX, to form a consortium aimed at securing US government contracts.
This new group intends to challenge the dominance of traditional defence heavyweights such as Lockheed Martin (LMT) , Northrop Grumman (NOC), Boeing (BA), and Raytheon Technologies (^RTX), according the Financial Times.
One anonymous participant in the talks described the initiative as a bid to create “a new generation of defence contractors,” while another suggested it could be a more efficient model for delivering cutting-edge weapons and technologies to the Pentagon. The collaboration could help provide more advanced solutions for the US military, bypassing the bureaucratic and costly structures of traditional defence firms.
Tesla (TSLA) CEO Elon Musk, who has long advocated for government efficiency, is also reportedly involved in the consortium. As co-leader of president-elect Donald Trump’s drive to reform Pentagon spending, Musk has signalled that he will push for more cost-effective defence solutions.
The consortium’s formation could be announced as early as January, according to reports. Palantir, one of the driving forces behind the initiative, has seen its stock soar this year, with shares up an impressive 369%, making it one of the best performers in the S&P 500 index (^GSPC) in 2024.
Senior executives and board members at Spotify have collectively sold $1.25bn (£995m) in stock this year, capitalising on the company’s share price surge.
Among the largest sellers were co-founders Daniel Ek and Martin Lorentzon, who together sold $900m worth of shares.
Kesha performs during the 2024 Wrapped Universe Event hosted by Spotify on 5 December in Los Angeles, California. ·Gonzalo Marroquin via Getty Images
Ek personally sold nearly $350m in shares, while Lorentzon cashed out more than $550m. Other senior executives, including chief product officer Gustav Söderström and chief human resources officer Katarina Berg, also took advantage of the surge by offloading substantial stock holdings.
Dustee Jenkins, Spotify’s head of public relations, who joined the company from retailer Target (TGT) in 2017, has sold more than $6mn in stock this year. Netflix (NFLX) chief executive Ted Sarandos, who has sat on Spotify’s board since 2016, made $6m from selling his Spotify stock this year.
Spotify’s stock, listed on the New York Stock Exchange, has almost tripled in value in 2024, propelling the company’s market capitalisation to approximately $100bn. This marks a significant turnaround from 2022 and 2023, when the company’s valuation had dipped below $20bn.
Novo Nordisk shares tumbled by 20% on Friday, and continued to struggle in pre-market trading on Monday, following the sharpest one-day decline in the company’s history. The plunge came after disappointing results from the latest trial of its weight-loss drug, CagriSema.
The drop wiped out a staggering €90bn in market valuation and sent shockwaves through investors, who had high hopes for the new treatment.
The Danish pharmaceutical company announced that its phase three trial for CagriSema showed a weight loss of 22.7% after 68 weeks, falling short of the expected 25%. Furthermore, when patients failed to adhere to the treatment regimen, the weight loss figure dropped to 20.4%.
This result has raised concerns over the company’s ability to maintain its competitive edge in the rapidly expanding obesity and diabetes drug market, where expectations for breakthrough treatments have soared in recent years.
The setback caused a 16% decline in Novo Nordisk’s year-to-date performance, dealing a blow to its position as Europe’s largest company by market capitalisation.
Honda and Nissan (7201.T) have signed a memorandum of understanding to begin talks that could lead to the largest domestic merger in Japanese automotive history, potentially creating the world’s third-largest carmaker by sales.
The two companies announced at a press conference in Tokyo on Monday that they aim to reach a definitive merger agreement by June, with the deal expected to be completed by 2026.
The memorandum of understanding also includes Mitsubishi Motors (7211.T), a smaller member of the Nissan Alliance, in the discussions about the proposed integration.
Japanese automakers have struggled to keep pace with global competitors in the fast-growing electric vehicle (EV) market and are under increasing pressure to streamline operations and cut costs. A merger would combine the strengths of Honda, Nissan, and Mitsubishi, enabling the group to compete more effectively with global automotive giants.
If the merger proceeds as planned, the new entity could be valued at over $50bn based on the market capitalisation of the three companies. The consolidated group would rank as the world’s third-largest carmaker by vehicle sales, behind Toyota (7203.T) and Volkswagen (VOW3.DE), at a time when traditional carmakers face mounting challenges from electric vehicle leader Tesla and aggressive Chinese competitors.
Honda, Japan’s second-largest automaker after Toyota, is currently valued at more than $40bn, while Nissan, ranked third, has a market capitalisation of approximately $10bn. According to the companies, Honda will appoint the majority of the holding company’s board once the merger is finalised.
Shares in Direct Line surged following the announcement that Aviva (AV.L), the UK’s largest insurer, has agreed to acquire the rival insurer for £3.7bn. The deal, which includes plans for up to 2,300 job cuts, is part of the companies’ strategy to achieve £125m in cost savings.
Aviva said on Monday it will offer £2.75 for each Direct Line share, comprising a combination of cash and shares. The offer also includes an increased dividend payout for Aviva’s shareholders, reflecting the expanded scale and enhanced profitability expected from the merger.
Direct Line’s shareholders will receive 0.2867 new Aviva shares, 129.7p in cash, and up to 5p in dividends per share, valuing each Direct Line share at 275p. This represents a 73.3% premium to Direct Line’s closing price on 27 November, the day Aviva first unveiled its takeover bid.
The merger would create a force in the UK motor insurance market, with the combined group expected to cover more than a fifth of the sector.
“This deal is excellent news for the customers and shareholders of Aviva and Direct Line,” said Amanda Blanc, CEO of Aviva. “The financial strength and scale of the combined group means customers will benefit from competitive pricing, an enhanced claims experience, and even better service.”
Under the terms of the deal, Aviva shareholders will hold approximately 87.5% of the new company, while Direct Line shareholders will own about 12.5%.
Shareholders are set to vote on the deal in March, with the merger expected to complete by mid-2025. Danuta Gray, chairperson of Direct Line, described the deal as “reflecting the attractiveness of Direct Line.”
Aviva and Direct Line reached a preliminary agreement earlier this month, with Aviva having until Christmas Day to make a formal offer under UK takeover regulations.
