Mergers and acquisitions

What happened

TotalEnergies acquired a 25% working interest in 26 US offshore exploration leases operated by Chevron. TPG is in talks to buy Ark from Elliott for about $5 billion. Ares Capital will buy Apollo's MidCap Financial Investment in a deal valued at about $2.6 billion.

Confirmed

Global impact / market context

Ares Capital buying MidCap expands its direct lending to mid-sized businesses, which means more competition for loan deals and potential pressure on profit per sale from lending. TotalEnergies gains more offshore exploration exposure, tying future revenue to drilling results and oil prices.

Analyst inference

The deals show active merger activity across energy, data centres and direct lending. TPG's reported talks and Intel's reported quantum software purchase signal buyers still pay up for technology and infrastructure assets, while Warburg Pincus raised its bid for Ingenia, pushing shares to a 10-month high.

Analyst inference

What to watch

1. Ares Capital's stock-and-cash purchase of Apollo's MidCap Financial Investment carries an enterprise value of about $2.6 billion, so watch how the combined company's lending book and funding costs evolve after closing. Confirmed
2. If TPG completes a deal for Ark at about $5 billion, watch for details on how the data centre group is financed, since borrowed money levels would shape future capital spending plans. Proposed
3. Warburg Pincus raised its offer for Ingenia to A$2.24 billion, so watch whether the board accepts and whether a higher competing bid emerges for the property developer. Analyst inference

Evidence

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