Dow re-approaches record territory | Calamatta Cuschieri

U.S. stocks closed higher Thursday, with the S&P 500 up for a fourth straight session on the back of strong technology shares. News that China may be receptive to overtures from the U.S. on new talks also soothed trade-related jitters. The Dow Jones Industrial Average advanced 147.07 points, or 0.6%, to end at 26,145.99, its first close above 26,000 this month, putting it within reach to break its all-time record of 26,616.71 points.

Europe’s main stock gauge gave up modest early gains to close slightly lower on Thursday, with the U.K. leading the way lower as the pound strengthened against a broadly weaker U.S. dollar. The Stoxx Europe 600 edged 0.2% lower to end at 376.52, after Wednesday’s gain of 0.5%. The U.K.’s FTSE 100 shed 0.4% to finish at 7,281.57 with Germany’s DAX 30 falling 0.2% to 12,055.55.

China approves Takeda purchase

Takeda Pharmaceutical Co Ltd said on Friday China approved its purchase of Shire Plc, the latest regulator to clear the $62 billion deal and bring the Japanese group closer to becoming a global top 10 drug maker. The deal is expected to close in the first half of 2019. Takeda’s stock is down 15 percent since the company first said it was considering a bid for Shire, with investors concerned about the heavy debt burden the deal will impose on the drug maker.

The acquisition, which will be the largest overseas purchase by a Japanese company, has already received unconditional clearance from U.S. and Brazilian regulators and awaits approval from Japan and the European Union. Takeda’s shares ended 0.7 percent higher ahead of the announcement. The benchmark Nikkei 225 index closed up 1.2 percent.

Nasdaq – Cinnober acquisition

Exchange operator Nasdaq said on Friday it planned to buy Swedish financial technology provider Cinnober in a deal valuing the business at around 1.7 billion crowns ($190 million). “This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments,” Nasdaq Chief Executive Adena Friedman said in a statement.

Cinnober’s main shareholder and chairman, Nils-Robert Persson, said he intended to accept the offer, which represents a premium of roughly 22 percent to the share’s closing price of 61.50 crowns on Thursday. Nasdaq said it expected the acquisition to deliver significant synergies and meet the company’s 10 percent return on invested capital objective over 3-5 years, and to be accretive to non-GAAP earnings per share within 12 months of closing.

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