From August 2019 to August 2020, there were a total of 12,123 merger and acquisition deals negotiated between businesses. Regardless if the agreements are large or small, each financial negotiation comes with its own set of complexities and requires intricate attention to detail.
If you’re looking to complete your own merger or acquisition this year, you can take inspiration from some of the largest mergers and acquisitions of all time.
Vodafone and Mannesmann Merger (1999) – $202.8B
To date, the largest acquisition took place in 1999 with the takeover Mannesmann, a German-owned industrial company, by telephone giant Vodafone, which ended up being worth around $203 billion. When the UK based telephone company Vodafone took over Mannesmann, it became the world’s largest mobile operator and asserted its dominance in the space setting the stage for many deals to follow.
Pfizer and Warner-Lambert Acquisition (1999) – $90B
Although the merger between Pfizer and Warner-Lambert was a very hostile deal with many road bumps, it led to the second-largest drug company in the United States. Pfizer had its eye on Warner-Lambert because it wanted access to Lipitor, a cholesterol medication that was in high demand. While the acquisition took three months, Pfizer took over Warner-Lambert for $90 billion and obtained control of the profits of Lipitor, which totaled to over $13 billion.
Verizon and Vodafone Acquisition (2013) – $130B
Just as mentioned above, the Vodaphone and Mannesmann merger served as the base for many future mergers and acquisitions. In this deal, Verizon acquired Vodafone’s 45 percent stake in the U.S. division of Verizon wireless, with a value of $130B. After this deal, Verizon ended a troublesome partnership with Vodafone and regained control over its wireless division.
Heinz and Kraft Merger (2015)- $100B
The merger between Heinz and Kraft is proof that bigger is not always better. In this merger, H.J. Heinz Co. and Kraft Foods Group joined forces to create a new organization, appropriately named The Kraft Heinz Company. The reality $100B deal between the two companies turned out to be very disappointing. Nicknamed a “mega-mess”, this merger has led to an exponential decrease of the stock price and many missed opportunities based on ever changing consumer preferences.
AT&T and Time Warner Merger (2018) – $108B
Even though AT&T and Time Warner had both been involved in mergers that have been deemed unsuccessful in the past, such as the $182B AOL and Time Warner merger in 2000 that has been described as a failure for a myriad of reasons. However, with almost two decades to learn from their mistakes, the $108B deal between Time Warner and AT&T created the media conglomerate of WarnerMedia.
At Ellrich, Neal, Smith & Stohlman, P.A., our tax planning service goes far beyond filing a tax return. We assist new businesses with basic ownership options and tax consequences and guide growing businesses through year-end planning and projections. We offer a broad range of consulting services that include evaluating material transactions, mergers and acquisitions, international taxation strategies, and estate and trust planning.
Contact our Orlando, Palm Beach Gardens, or Miami offices today to learn more.