In the past decade, the business world has witnessed a plethora of Merger and Acquisition (M&A) deals taking place across various industries.
These M&A deals are a strategic move by companies to acquire other companies or merge with industry competitors to gain a competitive advantage and synergies.
In this article, we will discuss the largest M&A deals that have taken place in the last 10 years and their implications for the companies involved and the industry as a whole.
Merger of Dow Chemicals and DuPont
The first major M&A deal on our list is the merger of Dow Chemicals and DuPont in 2017 for $130 billion. This deal was aimed at creating a conglomerate that can cater to various industries ranging from agriculture to automotive.
The merger was seen as a strategic move by both companies to cut costs and streamline their operations in a highly competitive market. The deal was eventually approved by various regulatory bodies globally, which led to the creation of three independent companies – Corteva Agriscience, DuPont, and Dow Inc.
Acquisition of Time Warner by AT&T
The second major M&A deal is the acquisition of Time Warner by AT&T in 2018 for $85 billion.
This was a significant move by AT&T, which sought to diversify its product offerings and expand its customer base.
The acquisition of Time Warner was aimed at providing AT&T access to a vast library of content and distribution channels. However, this deal sparked controversy, and the US Department of Justice filed a lawsuit against AT&T, stating that the merger would give AT&T too much market power, leading to high prices for consumers.
The lawsuit was eventually dismissed, and the acquisition was completed in March 2019.
Acquisition of Monsanto by Bayer
The third significant M&A deal is the acquisition of Monsanto by Bayer in 2018 for $63 billion.
This deal was highly significant in the agriculture industry, as it brought together some of the most well-known names in the industry. Monsanto was known for its genetically modified seed technology, while Bayer was known for its chemical fertilizers and pesticides.
The acquisition was seen as a move by Bayer to diversify its product offerings and cater to the growing demand for sustainable agriculture practices.
However, the merger also faced criticism from environmental activists who raised concerns over the impact of genetically modified seed technology.
Acquisition of Vodafone by Verizon Wireless
In 2013, Verizon Wireless acquired Vodafone’s 45 percent stake for $130 billion.
The transaction marked one of the largest M&A deals in history and gave full ownership of the largest wireless provider in the US to Verizon. The move has enabled Verizon to maintain its leadership position in the telecom market and strengthen its network to attract more customers.
The Walt Disney Acquisition of 21st Century Fox
The Walt Disney Company’s acquisition of 21st Century Fox for $71.3 billion in 2019 is another significant M&A deal.
The acquisition has created an entertainment giant, bringing together Fox’s assets in cable, movies, and television studios with Disney’s iconic brands like Pixar, Marvel, and Star Wars.
By acquiring Fox’s studios, Disney has access to a vast library of content that it can leverage to create new, exciting experiences for its clients.
Dell Acquisition of EMC
In 2016, Dell acquired data storage company EMC for $63 billion in a deal that brought together two of the leading companies in the IT industry. The acquisition enabled Dell to reinvent its business strategy to focus more on software and storage services.
The deal helped Dell to compete better with corporate giants like IBM and HP in the data storage arena.
Acquisition of Allergan by AbbVie
The other significant M&A deals in the pharmaceutical industry include the acquisition of Allergan by AbbVie in 2019 for $63 billion and the merger of Bristol Myers Squibb and Celgene in 2019 for $74 billion.
Acquisition of Whole Foods Market by Amazon
In 2017, Amazon acquired Whole Foods Market for $13.7 billion, another significant deal that has changed the landscape of the retail industry.
The deal has brought together Amazon’s online retail expertise with Whole Foods’ established brick-and-mortar presence, creating a formidable force in the grocery market.
The acquisition has not only boosted Amazon’s revenue but has also expanded the company’s physical footprint, which has been the key factor for Amazon’s success in the retail business.
Acquisition of Starwood Hotels and Resorts by Marriott International
In 2015, Marriott International acquired Starwood Hotels and Resorts for $13.3 billion, creating the world’s largest hotel company.
The merger has enabled Marriott to expand its brand portfolio and reach a broader range of customers, from luxury travelers to budget-conscious tourists.
The acquisition has also given Marriott a significant presence in Asia, one of the world’s fastest-growing tourism markets.
Raytheon Company acquired by United Technologies
In 2019, United Technologies acquired Raytheon Company for $122.3 billion in an all-stock merger.
The deal brought together two of the world’s leading companies in aerospace and defense technology, creating a powerhouse in the industry.
By merging, the companies aimed to develop new and innovative products that could address the evolving needs of customers across the globe.
Conclusion
The last decade has witnessed some of the largest M&A deals in history that have reshaped the business landscape across various industries.
These deals have enabled companies to strengthen their market positions and access new markets and technologies. Mergers and acquisitions have become an essential strategy for companies wishing to grow and remain competitive in today’s rapidly changing business environment.
The future is likely to see more M&A deals that will continue to transform various industries, enabling companies to achieve their growth and expansion objectives.