LONDON — Shares of Novo Nordisk slipped 1.1% on Thursday after the Danish pharmaceutical giant confirmed plans to acquire U.S. biotech company Akero Therapeutics in a deal worth nearly $5 billion, underscoring the drugmaker’s continued expansion into high-value therapies.
Novo Nordisk Expands with Akero Buyout
The acquisition terms will see Novo Nordisk pay $54 per share in cash, valuing Akero at approximately $4.7 billion. In addition, the deal includes a contingent value right (CVR) of $6 per share, which could increase the total purchase price by another $500 million depending on regulatory or pipeline milestones.
The announcement triggered sharp moves in both companies’ stock prices. New York-listed Akero shares surged 16.5% on Thursday morning, reflecting investor confidence that the biotech’s development programs—particularly in treatments targeting metabolic and liver diseases—will benefit from Novo Nordisk’s global resources and commercial reach.
Novo Nordisk, best known for its blockbuster diabetes and obesity drugs such as Ozempic and Wegovy, has been on an aggressive acquisition drive to bolster its research pipeline beyond diabetes care. Analysts noted that the Akero acquisition aligns with Novo’s push to diversify into broader metabolic and cardiovascular health, where competition is intensifying.
“Akero’s portfolio could give Novo access to new therapies in non-alcoholic steatohepatitis (NASH), an area with high unmet medical need and substantial market potential,” said one London-based pharma analyst. “The CVR also suggests Novo is confident about Akero’s late-stage assets reaching commercialization milestones.”
HSBC Pushes Privatization of Hang Seng Bank
In a separate corporate move that rattled banking stocks, HSBC’s London-listed shares tumbled 4.5% on Thursday after the lender announced a privatization proposal for Hang Seng Bank, its Hong Kong-based subsidiary.
HSBC, which currently owns a 63% stake in Hang Seng, said the proposal would see the bank delisted from the Hong Kong Stock Exchange and become a wholly owned subsidiary of HSBC Asia Pacific. If shareholders approve, Hang Seng would be fully integrated into HSBC’s regional operations.
The news sparked an immediate surge in Hang Seng’s stock price in Hong Kong, but it weighed on the wider European banking sector, dragging it 1.2% lower in afternoon trade. Market participants said the plan raised questions about HSBC’s long-term Asia strategy and potential regulatory hurdles.
“Privatization may streamline HSBC’s regional structure, but the timing is delicate, especially as global banks navigate slower growth in China and broader pressures on margins,” said a Frankfurt-based banking analyst.
European Markets React to Corporate Moves and Political Uncertainty
Across European markets, sentiment was mixed on Thursday as investors weighed corporate deals, fresh tariff measures, and political developments in France.
The pan-European Stoxx 600 dipped 0.2% by mid-afternoon.
France’s CAC 40 edged up 0.1% as political uncertainty lingered following Prime Minister Sebastien Lecornu’s resignation earlier in the week. President Emmanuel Macron has promised to name a successor within 48 hours, with calls mounting for a candidate outside his centrist circle.
The German DAX added 0.2% despite official data showing exports unexpectedly fell 0.5% in August compared with July, reflecting weaker demand from key trading partners.
The UK’s FTSE 100 slipped 0.2%, as weakness in banking and energy shares offset modest gains in consumer staples.
Investors are also still digesting the European Union’s decision earlier this week to cut tariff-free quotas on imported steel and double tariffs from 25% to 50% on excess imports, a move that lifted steelmakers but raised alarm among automakers.
Asia-Pacific and Wall Street Moves
In Asia, SoftBank surged as much as 13% in Tokyo trading on Thursday after the Japanese investment conglomerate announced a $5.4 billion acquisition of ABB’s robotics division. The purchase marks another step in SoftBank’s strategy to strengthen its artificial intelligence and automation portfolio, an area that has fueled much of its recent investment focus.
Meanwhile, U.S. futures pointed slightly higher after the S&P 500 closed at record highs on Wednesday, extending a months-long rally driven by technology and AI stocks. Traders remain cautious, however, amid lingering concerns about a potential government shutdown, now stretching into its second week.
Outlook
The mix of large-scale corporate deals, shifting trade dynamics, and political uncertainty kept global markets in a cautious but active mode. For investors, Novo Nordisk’s aggressive pipeline expansion, HSBC’s Asia restructuring, and SoftBank’s AI-driven ambitions are likely to remain key themes shaping sentiment in the days ahead.
