Today in the Market (12/12/2022)

Good Evening. US markets climbed on Monday, kicking off a busy week for investors, including critical inflation data and the Fed’s last policy meeting.

The S&P 500 increased by 1.43%, while the Dow Jones led the way by 1.58%. The Nasdaq Composite gained 1.26%.


Rivian (RIVN) stated today that it would halt efforts to co-develop an electric vehicle with Mercedes-Benz (MBG.DE) and would no longer pursue a memorandum of understanding inked between the two businesses in September of this year.

Why is Rivian withdrawing? The Wall Street Journal reported earlier today that Rivian management was anxious about pursuing the joint venture with Mercedes to construct vans at its facility in Poland, due to concerns about overextending operations at a time of tight financing markets and mounting global macro uncertainties.

Furthermore, Rivian is in execution mode to deliver on its consumer business with the R1T and R1S adventure vehicles, as well as on the commercial side with its EDV van. Rivian has been under pressure to produce 25,000 cars this year, a goal it reduced in March owing to component shortages and manufacturing ramp-up.


Amgen Inc. (AMGN) agreed to pay around $27.8 billion for Horizon Therapeutics Plc in its largest-ever acquisition, increasing its commitment to medicines for autoimmune, inflammatory, and rare diseases.

Amgen would pay $116.50 per share in cash, the company said in a statement Monday, representing a 48% premium over Horizon Therapeutics’ November 29 announcement that it was in early conversations with three bidders. The revelation backs by an earlier Bloomberg News article.

Why is the acquisition happening? Following the grueling concentration on Covid-19, major pharmaceutical companies are beginning their research for innovative therapies, particularly those that treat uncommon diseases and cancer. And this will all be done by Citigroup Inc. and Bank of America Corp. by providing Amgen with a $28.5 billion bridging credit line to complete the acquisition. This is the banks’ second collaboration this year to advise and finance a big transaction, after their work on Philip Morris International Inc.’s acquisition of Swedish Match.

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