✈️ Lufthansa Deal With ITA Wrapping Up Next Week

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Good Morning. This is the Investor Lookout with the daily digest.

Here’s what we got today:

  • ✈️ Lufthansa Expected To Complete Acquisition of ITA Airways

  • 🥼 Novo Nordisk Expands AI Drug Development Partnership

  • 🍏 Apple Still Blocked From Selling iPhones in Indonesia

Lufthansa Expected To Complete Acquisition of ITA Airways

All's well when it ends well. Lufthansa Group ($LHA) is on track to complete a deal for the acquisition of ITA Airways on January 13, a source close to the matter reported. The German airline group's CEO, Carsten Spohr, has given the nod, and although no official statement has been made yet, Lufthansa previously stated that the process should finish in early 2025. The deal involves a €325 million investment for a 41% stake in ITA, with the option to acquire the rest later. ITA Airways approved a $338 million capital increase, allowing the more significant airline to subscribe to ITA's shares.

  • Lufthansa adds ITA to its portfolio, including Austrian Airlines, Brussels Airlines, Swiss, and Lufthansa.

  • The European Commission approved the acquisition late last year.

Novo Nordisk Expands AI Drug Development Partnership

Artificial intelligence is already speeding up drug development. Ozempic drug maker Novo Nordisk ($NOVO.B) declared on Wednesday that it expanded a deal with a drug developer that uses artificial intelligence. The agreement reached last year between Novo Nordisk and privately held Valo Health has reached a value of $4.6 billion, up from the previously penned $2.7 billion. The collaboration includes a near-term payment of up to $190 million. The joint effort will help advance and find treatments for obesity, type 2 diabetes, and cardiovascular disease.

JOEL SAGET/AGENCE FRANCE-PRESSE/GETTY IMAGES

  • Novo Nordisk's obesity drug CagriSema posted underwhelming results in December, which caused a 21% stock drop. 

  • Its shares rose by 3%, though earlier it gained 5%. 

Apple Still Blocked From Selling iPhones in Indonesia

When an accessory is not enough, Apple ($AAPL) must try harder. Apple still can't sell iPhone 16s in Indonesia after a ban imposed by the Indonesian government on the basis that the phone does not meet local materials sourcing requirements. The Cupertino company has been negotiating with the government of 280 million people since October and has recently pledged a $1 billion investment in the country with an AirTag factory. Indonesia's industry minister, Kartasasmita, said the investment would not be enough to give the green light for the iPhone series. Apple must solve disagreements, as the Indonesian market is a key sector globally.

  • Rivals such as Samsung have aligned with the country's requirements. 

  • Tech companies must source at least 40% of their smartphone materials locally. 

Market Analysis For the Average Investor 🔎

#1

Acquiring the struggling Italian airline could be a win-win situation for both companies, as Lufthansa can use its fine-tuned operations to bring ITA back from the edge of collapse.

#2

AI drug development could be more than just hype and could justify its investments in the future.

#3

Indonesia is a key market for Apple, and they will probably comply with regulations to not affect the share price.

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