US mergers and acquisitions volume amounted to $865.1 billion during the first nine months of last year, according to Dealogic. This reflects a 39% increase during a similar period the previous year and the highest nine-month total since 2008. It also recorded the biggest mergers and acquisitions to date.
While they may not be able to deliver value for shareholders along the way, it is hard to say that economic or market growth will be truly healthy without such activities. However, companies doesn't get involved in deals when both market and economy are in a funk. For some companies, mergers and acquisitions can give them the boost that their company needs. For them, it is a sign of better things to come.
Some merger & acquisition deals have hugged the limelight while others went on unnoticed. Nevertheless, it helped a lot in the recovery of mergers & acquisitions. Here we will look at the top five mergers and acquisitions based on the list made by Tropical Post.
1. Vodafone Air Touch Mannesmann
In 1999, the merger of US based wireless telephone company Air Touch Communications with Vodafone Group led to the creation of Vodafone Air Touch. That same year, Vodafone Air Touch joined forces with Mannesmann to create one of the leading telecommunications company in the world. Based on the principle of mutual respect and cooperation, the merger and acquisition of the two companies were worth $202 billion and is the biggest deal to date.
2. AOL-Time Warner
America Online and Time Warner consummated a merger and acquisition deal in January 2001 worth $162 billion. However, some parts of the deal did not work out according to plan, and in December 2009, it boiled down to being "one of the biggest failures in merger history." In 2002, AOL Time Warner filed a $99 billion loss and the two companies are now working separately again.
3. Pfizer-Warner Lambert
In 1999, pharmaceutical company Pfizer acquired Warner Lambert for an amount worth $99 billion. The merger of the two companies solidified the two entities position in the pharmaceutical industry. By acquiring Warner Lambert, Pfizer enhanced its product lines which now include Parke-Davis pharmaceutical brands, Listerine Mouthwash, and Schick and Wilkinson Sword wet-shave products.
4. Exxon - Mobil
From 1972 to 1999, Exxon was the corporate name of the company then known as Humble Oil or Standard Oil based in New Jersey. On the other hand, Mobil previously used the name Socony Vacuum Oil Company. Since its merger in 1999 for $82 billion, Exxon Mobil has turned in record profits in the last several years.
5. Glaxo Wellcome-SmithKline Beecham
The merging of Glaxo Wellcome and SmithKline Beecham led to the creation of GlaxoSmithKline (GSK) in 2000. Today, GSK's product lines focus on the areas of major diseases such as asthma, cancer, virus control, infections, mental health, diabetes, and digestive conditions as well as products like Sensodyne and Horlicks. In July 2012, the company was involved in the largest health care fraud case and paid $3 billion as settlement for the case.
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