The year 2023 has been one of the most active years in the history of mergers and acquisitions, with several large corporations combining forces or buying out smaller competitors. This post will take a look at the biggest M&A deals of the year, analyzing why they happened and what impact they had on the market. From tech giants to energy companies, several major corporations have made significant moves this year that will shape the business landscape for years to come.
1) AT&T – Time Warner :
In 2018, AT&T announced its plan to acquire Time Warner in a historic $85 billion deal. This deal would bring together two of the most iconic American companies with a rich history of providing entertainment and communication services. AT&T had ambitions to become a content-driven company, while Time Warner aimed to expand its presence in the telecommunications industry.
The merger, which is expected to be completed in 2019, will enable both companies to capitalize on each other’s assets and offer customers access to innovative and integrated services. The combination of AT&T’s distribution and Time Warner’s media capabilities could give rise to new opportunities for growth and value creation for shareholders, customers, and other stakeholders.
2) Cigna – Express Scripts :
One of the biggest deals of the year was Cigna’s acquisition of Express Scripts. In March, Cigna acquired Express Scripts for $67 billion, making it one of the largest healthcare deals in history. The merger will help Cigna compete with pharmacy benefit managers such as CVS Health and UnitedHealth Group. With this merger, Cigna can now provide both health insurance and pharmacy benefits to its customers, giving them a better deal. It could lead to cost savings for customers by having a single company manage their health insurance and pharmacy benefits. Cigna-Express Scripts is a game changer in the healthcare industry and could lead to more mergers and acquisitions in the future.
3) Marriott – Starwood :
In 2016, Marriott International announced its purchase of Starwood Hotels and Resorts Worldwide, Inc. for $12.2 billion. This was the largest hotel company merger in history and transformed Marriott into a giant in the hospitality industry with over 30 brands, 1.2 million rooms, and more than 5,700 properties worldwide. The merged entity was renamed Marriott International and is now able to offer guests a wide variety of amenities, room choices, and experiences at their hotels around the world. With this merger, Marriott has become one of the most recognizable names in hospitality.
4) Walt Disney – 21st Century Fox :
In 2019, Walt Disney acquired 21st Century Fox in a mega-deal worth $71.3 billion. The deal included 21st Century Fox’s film and television studios, cable networks, regional sports networks, and international assets. This merger is seen as a strategic move to gain access to 21st Century Fox’s content library, which includes franchises such as X-Men, Avatar, and The Simpsons. Furthermore, it gave Walt Disney control of streaming rights to all of the content from both companies, allowing them to provide even more content for their streaming services. This acquisition is expected to significantly bolster Disney’s market presence and contributes to its continued success in the entertainment industry.
5) JAB Holding Company – Panera Bread :
JAB Holding Company, a privately held investment company, acquired the Panera Bread chain for $7.5 billion in 2017. This is one of the biggest mergers of the year. The chain has over 2,000 bakery cafes across the United States and Canada. JAB has plans to expand the chain’s international presence while maintaining the brand’s core values of fresh, nutritious food. This acquisition would add to the company’s portfolio of brands, including Krispy Kreme Doughnuts and Peet’s Coffee & Tea. JAB’s acquisition of Panera Bread was a major move in its drive to become a global player in the food and beverage sector.
6) Kroger – Home Chef :
In November 2018, grocery giant Kroger acquired Home Chef for a reported $200 million. The Chicago-based meal kit company was founded in 2013 and quickly rose to become one of the largest companies in its sector. With the acquisition, Kroger plans to expand its meal-kit business and offer customers more convenient meal options. Home Chef is now integrated into the Kroger family of stores, providing meal kits and pre-prepared meals in select stores across the US. With the help of Home Chef’s technology, Kroger can provide shoppers with more personalized options and healthier meals tailored to their preferences.
7) Dell Technologies – EMC :
Dell Technologies $60 billion acquisition of EMC in 2016 marked the largest tech deal ever made. The merger combined Dell’s expertise in PCs, servers, and storage with EMC’s enterprise-focused offerings, giving the combined entity an enormous presence in the IT market. Dell and EMC merged their respective IT infrastructure, cloud, security, and data protection solutions to better serve customers and create a powerful business platform. The merger has helped the two companies become a dominant force in the IT industry, offering powerful and innovative products and services.
8) Aetna – CVS Health :
In December 2018, Aetna and CVS Health announced their plan to combine to revolutionize the healthcare industry. The merger, valued at $69 billion, is one of the biggest healthcare deals of the year and signals a transformation of both companies’ services. Aetna, the third largest health insurer in the U.S., will become a part of CVS, the largest pharmacy chain in the country. The two entities plan to leverage their combined resources to create more accessible and affordable care for their customers. By merging, they also aim to reduce costs, improve the customer experience, and develop new models of care. The merger is expected to close in the second half of 2018, pending regulatory approvals.