From NatWest’s divestment to Merck’s $6.7 billion Terns buyout and a wave of bids that got sweetened, pulled, or rejected, companies are refocusing on what drives growth.
What’s going on here?
March has turned into a sprint for dealmakers, as banks, drugmakers, and money managers buy growth, sell distractions, and ditch deals when the numbers stop adding up.
What does this mean?
This week’s headlines show two classic M&A drivers running in parallel: focus and future-proofing. NatWest agreed to sell its HR advisory unit, Mentor, to private equity-backed Empowering People Group as it narrows in on core banking and wealth. Merck, meanwhile, is paying up to $6.7 billion for Terns Pharma to bolster its cancer pipeline ahead of the eventual patent loss for Keytruda, its top seller. But bidders are also getting more cautious: Pepper Money knocked back Challenger after its offer was cut, and Victory Capital walked away from its roughly $8.6 billion pursuit of Janus Henderson amid a more competitive field. Even retailers are reshuffling, with Aurelius reportedly exploring Carrefour’s Belgian unit, per L’Echo.
Why should I care?
For markets: Deals come with more strings attached.
Pushback on lower bids is a sign that financing costs and confidence still matter – and that not every “busy M&A tape” is bullish. Rejections and walkaways can cool animal spirits in sectors reliant on leverage, while competitive auctions can still lift valuations for scarce, strategically important assets. The result is a market that rewards clear synergies and punishes wishful math.
The bigger picture: Corporate strategy is getting more defensive.
Boards are acting like portfolio managers: they’re selling units that don’t earn their keep and buying what extends future cash flows. That’s why you’re seeing bank divestments alongside pharma pipeline shopping ahead of patent cliffs. If this continues, expect fewer empire-building megadeals and more targeted transactions where the payoff is easier to explain.
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Originally Posted March 25, 2026 – Dealmakers Are Busy As Banks, Retailers, And Funds Reshape Portfolios
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