The Chem Ledger #1: Siemens' Acquisition, Collaborative Chemical Recycling, Bayer's FDA Clearance and More

M&A

1/ On November 5, 2024, Shrieve Chemical announced the acquisition of Connection Chemical. Both companies are involved in the chemical distribution industry. This move broadens Shrieve's product portfolio and strengthens its position in the market. 

2/ Siemens has recently announced its agreement to acquire Altair Engineering Inc. for approximately $10.6 billion. This acquisition is aimed at enhancing Siemens' capabilities in industrial software, particularly in areas such as simulation, data analytics, and high-performance computing. Siemens aims to enhance its Xcelerator platform, which focuses on digital twin technology. Altair shareholders will receive $113.00 per share in cash, which represents a 19% premium over Altair's stock price prior to the announcement. 

3/ AbbVie has announced that it intends to acquire Aliada Therapeutics for $1.4 billion in cash. This move aims to bolster AbbVie's focus on Alzheimer's disease and expand its neuroscience pipeline. Aliada is known for its therapies that utilize a novel technology capable of crossing the blood-brain barrier, which is crucial for treating neurological conditions. The acquisition will provide AbbVie with access to Aliada's lead investigational drug, ALIA-1758, an anti-pyroglutamate amyloid beta (3pE-Aβ) antibody, which is being developed as a potential best-in-class therapy for Alzheimer's disease. The deal is expected to close in the fourth quarter of 2024, pending regulatory approvals.

 4/ L&T Technology Services (LTTS) has signed a definitive agreement to acquire Intelliswift, a Silicon Valley-based Artificial Intelligence (AI) and software company for $110 million. Intelliswift is known for its AI-driven automation framework and has a strong client base, servicing four of the top five hyperscalers and over 25 Fortune 500 companies. This acquisition aims to enhance LTTS's capabilities in software product development, platform engineering, digital integration, and AI. 

Collaborations

1/ Alterra, Neste, and Technip Energies have formed a collaboration to advance the circular economy of plastics through chemical recycling. Alterra and Neste will provide their proprietary liquefaction technology, a thermochemical process designed to convert hard-to-recycle plastics into valuable resources. Technip will provide the design, engineering, and delivery of standardized plant solutions based on this technology. The aim is to offer these solutions to interested parties worldwide, thus promoting the scalability and efficiency of chemical recycling processes.

2/ Abu Dhabi National Oil Company (ADNOC) and AIQ Intelligence are collaborating on innovative AI solutions aimed at transforming the energy sector. The companies recently announced the launch of ENERGYai, described as the world's first custom-built agentic AI solution for global energy transformation. This tool will leverage ADNOC's extensive data accumulated over 80 years to enhance economic growth, energy security, and advancement towards a net-zero future.

Exits

Mitsubishi Chemical  was recently involved in the competition for the BGC building materials portfolio, which is valued at approximately $800 million and is based in Perth. Reports indicate that Mitsubishi Chemical have excited the bidding process. Mitsubishi Chemical operates in various sectors, including petrochemicals and performance materials. 

Investments

International Assets Investment Management LLC has significantly increased its stake in Westlake Chemical Partners LP, acquiring over 31000 shares in the third quarter of 2024, indicating growing investor interest. Westlake Chemical Partners primarily focuses on the acquisition, development, and operation of ethylene production facilities in the United States. The company operates three key facilities located in Calvert City, Kentucky and Lake Charles, Louisiana. These facilities have a combined annual production capacity of 3.7 billion pounds of ethylene.

Regulatory

Bayer announced that it received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its MEDRAD® Centargo CT Injection System. This system is designed to enhance workflow in high-volume radiology settings by streamlining the process of administering contrast agents during computed tomography (CT) scans. Additionally, Bayer's efforts in drug development were highlighted with the FDA's acceptance of a New Drug Application (NDA) for elinzanetant, a medication aimed at improving menopause care for women in the U.S.