Rotork PLC

Rotork PLC reported first-half 2026 adjusted operating margin of 22.4%, up 60 basis points on an organic constant currency basis, with adjusted operating profit rising 4.1% to GBP82 million. Revenue reached GBP367 million, up 1.3% organically, while orders fell 4% to GBP372 million, dragged by an 8.4% decline in the oil and gas division. The CPI division delivered 16% revenue growth, and Rotork Service grew to 24% of group sales. The company declared an interim dividend of 3p per share, up 1.7%, and noted the proposed cash acquisition by ABB at 506p per share, a 73% premium to the undisturbed price.

Eli Lilly has agreed to acquire psychedelic drugmaker AtaiBeckley for $6.75 per share in upfront cash, valuing the deal at approximately $2.8 billion, plus up to $2.50 per share in contingent value rights tied to clinical and regulatory milestones. In other notable deals this week, Dassault Systèmes is in discussions to acquire drug trial software maker ArisGlobal from Nordic Capital for about $2 billion, though talks are ongoing and may not result in a deal. ABB Ltd. agreed to acquire Rotork for £5.03 per share in cash, a 60% premium to the company's three-month average share price, valuing the company at about £4.1 billion. A consortium led by KKR and Energy Capital Partners raised its takeover proposal for Irish energy distributor DCC to £67.97 per share, valuing the company at £5.81 billion, or approximately $7.86 billion. Stripe and Advent International have reportedly made a joint offer to acquire PayPal for $60.50 per share, in a deal that would value the payments company at more than $53 billion, though PayPal's board views the bid as inadequate. Uber Technologies launched a public takeover offer for Germany's Delivery Hero, valuing the food delivery company at about $14.8 billion in equity value. Kimbell Royalty Partners agreed to acquire oil and gas royalty interests from affiliated sellers for approximately $215.4 million, consisting of $74.9 million in cash and 9.5 million newly issued common units. Zoetis announced an agreement to acquire VitalRADS, a Texas-based provider of veterinary imaging services.

ABB has agreed to acquire British actuator manufacturer Rotork in a deal with an enterprise value of around $5.5 billion. Under the recommended cash offer, Rotork shareholders would receive 503 pence per share, a premium of about 60% to the latest three-month average share price, plus an interim dividend of up to 3 pence per share. The transaction, expected to close in the first half of 2027, is subject to Rotork shareholder approval and regulatory clearances. Rotork, which recorded around $1 billion in revenues and a 24.6% adjusted operating profit margin in 2025, will operate as a separate division within ABB's Automation business area and is projected to add roughly 12% to that unit's revenues. ABB plans to fund the deal with existing cash and committed bank facilities, alongside approximately $4.8 billion in net cash proceeds from the signed divestment of its Robotics business to SoftBank.

The London stock market closed higher, with the FTSE 100 rebounding. Amid a global sell-off in tech stocks, consumer staples were bought, sending the FTSE 350 Personal Goods index up 2.61%, the Beverages index up 2.36%, and the Retail index up 1.92%. Pharmaceutical giant GSK rose 2.1%, while AstraZeneca gained 0.5%. Automation solutions firm Rotork surged 66.8% after Swiss heavy electrical equipment giant ABB announced its acquisition. European equity markets rose for a third straight session, with the STOXX Europe 600 up 0.16%. The Basic Resources index fell 1.38%, while the Media index climbed 1.43%. Dutch firm ASML Holding rose 3.2%, but STMicroelectronics fell 4.9% and BE Semiconductor dropped 3.2%. Norway's Telenor tumbled 11.6% after lowering its full-year outlook. In eurozone bond markets, the German 10-year yield rose 3 basis points to 3.135%, its highest since May 20. The German-US 10-year yield spread narrowed to 143 basis points. In currencies, the euro traded at 1.1446 dollars, and the dollar at 162.42 yen.