The decade saw a slowdown of many developed and emerging economies. This slowdown made business enterprises think about the strategies which are viable to sustain growth. Many companies choose the way of combing the business to form a new entity and face the adverse situation with new zeal.
We have listed out the 20 biggest mergers and acquisitions that marked the change in the business strategy of the companies in an attempt to survive and grow in the new business environment.
A List of 20 Successful Mergers and Acquisitions
- Verizon and Verizon Wireless
- Dow and DuPont combine businesses
- Anheuser-Busch InBev and SAB Miller
- Heinz and Kraft
- AT&T and Time Warner tie-up
- Charter Communications and Time Warner Cable merger
- Disney and 21st Century Fox
- CVS and Aetna
- Cigna and Express Scripts
- United Technologies and Raytheon
- Dell and EMC Corporation
- Actavis and Allergan Inc
- Royal Dutch and BG group
- Saudi Aramco and SABIC
- Praxair and Linde AG
- Unilever PLC with Unilever NV
- Cerner acquires Kantar Health
- Microsoft acquires Nuance
- Discovery Inc. by AT&T
- Canadian Pacific Railway Ltd and Kansas City Southern
1. Verizon buys Verizon Wireless
This deal was the biggest of 2014 and of the decade. Verizon bought the stake of Vodafone in Verizon Wireless. Verizon had to pay $130 billion for the deal for 45% of shares that Vodafone held since 1999. The deal brought down Vodafone from second to fourth place in the ranking of the world’s largest wireless carriers. The $58.9 billion payment was done in cash and $60.2 billion in common stock by Verizon to Vodafone.
2. Dow and DuPont combine businesses
Dow Chemical Co. and DuPont merger was one of the biggest mergers of this decade. The planned merger was completed at $130 billion in the year 2016. This deal will merge two of the biggest agricultural chemical companies and DuPont’s seed business will fold in. The combined company will be named DowDupont which will later split into three independent, publicly traded companies.
3. Anheuser-Busch InBev acquires SAB Miller
This deal was also finalized in the year 2016 where the world’s largest beer maker Anheuser-Busch bought its rival SABMiller for more than $100 billion. The speculation was in the air before the acquisition that was confirmed by both the companies in November 2015. The combined company now has $55 billion in the yearly sale and holds 28% of the beer market across the globe.
4. Heinz merged with Kraft
The merger of H.J. Heinz Co. and Kraft Foods Group created a new company called The Kraft Heinz Company. The company is expected to be the fifth-largest food company in respect of sales. As per the agreement, Heinz will hold 51% of the stake in the freshly formed company and the remainder will go to Kraft. The agreement to form the new company was adopted unanimously by both of them. The deal costs approximately $100 billion.
5. AT&T and Time Warner tie-up
This was one of the major news in the business world for the year 2018. So big, that US legal department has to interfere to sort out the issue. The year was 2016 when AT&T showed its interest to buy Time Warner. AT&T and Time Warner sealed the deal of their $85.4 billion mergers after receiving approval from the regulatory body. The U.S. Department of Justice who was opposing the deal, in a statement, said that the government will not try to prevent the deal between two companies.
6.Charter Communications and Time Warner Cable merger
This was a combination of merger and acquisition in which we saw Charter Communications, Inc. and Time Warner Cable Inc. announced they have come to an agreement to merge into a single company. The deal valued Time Warner Cable at $78.7 billion. Charter will acquire Bright House Networks for $10.4 billion as per the amendment made in the agreement.
7. Disney buys 21st Century Fox
This was the biggest buy out in the history of the entertainment industry. Walt Disney Co. acquired famous 21st Century Fox with $85 billion. The intention behind the deal is to become a major player in video entertainment on the internet. Disney over the year focused on a bigger screen to distribute its product, but millennials are watching less TV and consuming more content from the internet. This saw the rise of video streaming providers such as Netflix, Amazon, and Hulu.
8. CVS and Aetna biggest acquisition in the healthcare
The acquisition of Aetna by CVS came forth in 2017, had drastically remapped the health care industry. CVS is a big drugstore chain and prescription drug insurer and Aetna was one the largest health insurer of the US. To date, it is considered one of the biggest deals in health insurance history. The deal had to be first approved by antitrust regulators who were quite skeptical of this acquisition. It cost $67.5 Billion to CVS out of which it paid $207 a share for Aetna, with $145 a share in cash and rest in stock.
9. Cigna acquire Express Scripts
The deal is set after getting the nod from the Department of Justice and was waiting for the approval from state insurance agencies. The agreement cost Cigna $70 billion to acquire Express Scripts. The deal was closed in December 2018. With this milestone agreement, the company is planning to establish a plan to further enhancing healthcare by implementing a model that is flexible and affordable. This will help in lower healthcare costs and provide better health services.
10. United Technologies buys Raytheon
United Technologies Corp. and Raytheon Co. agreed to create a new company that will cost $121 billion. This will be the biggest merger in the aviation industry. It will make the new company the second-largest aerospace company in terms of sales. Both United Technologies and Raytheon will have 50% of the shares in the new company. The deal is the sign of decreasing military spending and the need for companies to invest in new technologies on their own.
11. Dell obtains EMC Corporation
Dell with its associates MSD Partners and Silver Lake bought EMC back in 2015. The deal will make Dell and EMC the largest privately-controlled, integrated technology company. The $74 billion deal will help Dell to enhance its technology portfolio to solve complex business problems. The agreement was finalized in 2016 and the new company was named Dell EMC.
12. Actavis buys off Allergan Inc
In the fall of 2014, Actavis acquired Allergan for $66 billion. The money was paid in the combination of stock and cash. The deal will enhance the portfolio of Actavis in ophthalmology, neurology, urology, and dermatology. After the buyout, Actavis changed its name to Allergan except for a few geographical areas. This was the first time that an Irish company had bought the giant American company.
13. Royal Dutch bought in BG group
Royal Dutch Shell became the second-largest energy company in 2016 after it bought British BG Group in $53 billion. This acquisition brought the shell company next to Exxon Mobil in the list of largest companies by market capitalization. The deal will bolster the position of the company in the oil and natural gas market. The acquisition comes at a time when oil prices hit rock bottom and industry is going through a slump.
14. Saudi Aramco pays for stakes in SABIC
This contract was signed between two Saudi companies in the year 2019. In which Saudi Aramco obtained 70% of the stakes in Saudi Basic Industries Corporation (SABIC). The deal cost $69.1 billion. The remaining shares will remain in the public domain to be traded in the market. This was a major deal in the chemical industry. The deal is supposed to stop the downward spiral and the planning was in place to buy out the shares but got delayed due to regulatory factors.
15. Praxair merged with Linde AG
This was the most awaited merger of the year 2018. After getting the approval from US Federal Commission and European Commission Praxair Inc. merged with the Linde Group. The final deal was signed between both the companies in October 2018. This will bring two leading companies with a proven track record together to capture a better market share. The new company will have an enhanced geographical reach and with its broad range of products, it can sustain and expand exponentially. This deal will see both companies invest around $85.5 billion in the new entity.
16. Unilever PLC with Unilever NV
We have seen some of the biggest mergers and acquisitions in the last decade in the above list. The year 2020 has also witnessed several changes including numerous mergers and acquisitions. The world-renowned company, Unilever has announced its merger from Unilever N.V into Unilever PLC. This will make it one holding company based in the UK. The transaction value of the merger was recorded to be $81 billion which has placed it in our list of Biggest Mergers and Acquisitions of the Decade. Further, the wake of COVID-19 has caused a lot of disturbance all over the world. British Multinational consumer good company has contributed over €100m through donations essentials like soaps, hand sanitizer, bleach, and food to tackle the global COVID-19 crisis.
17. Cerner acquires Kantar Health
Eight months ago, Cerner was planning to make a move into the health IT space. The leaders announced spending $375 million for the analytics firm. Cerner has specialties in Alzheimer’s, oncology, and rare diseases. Its skills found a good match with Kantar’s abilities and enhanced its pharma life sciences research capabilities. The mergers build out its Learning Health Network consortium.
18. Microsoft acquires Nuance
Microsoft acquiring Nuance is one of the second Biggest Mergers And Acquisitions of year 2021. Few months ago, Microsoft bid a whopping $19.7 billion for Nuance Communications. Nuance was prepared for a buy of its own and scooped up AI-powered clinical documentation startup Saykara. It is an established player in voice-enabled clinical documentation.
19. Discovery Inc. by AT&T
In May 2021, AT&T announced its plan to acquire Discovery Inc. in addition to merging it with WarnerMedia business. The merger is aimed at handling over operational control to Discovery which is helmed by its CEO David Zaslav, and management teams of both companies. It will result in a new standalone entity Warner Bros. Discovery and AT&T is expected to close and clear past antitrust in the first half of 2022.
20. Canadian Pacific Railway Ltd and Kansas City Southern
Canadian National Railway bid a competitive war against Canadian Pacific Railway. The deal closed a $27.2 billion cash-and-stock deal to acquire Kansas City Southern and came into the list of Biggest Mergers And Acquisitions of 2022 year. It will create the first direct railway that links Canada, the United States, and Mexico. After the completion of this deal, Kansas City Southern (KCS) shareholders will receive 2.8% shares of Canadian Pacific Railway. Moreover, KCS will get US$90 in cash as common share and held US$37.50 in cash for each KCS preferred share