This article will shed some more light on five of the most high-value acquisitions ever made in global corporate history.
1. Vodafone acquires Mannesmann AG
Vodafone, a British multinational telecom company decided to acquire Mannesmann AG in 1999. The acquisition happened in February 2000. This acquisition was valued at $202 billion, making this takeover, the largest acquisition deal in corporate history was made. This came at a time when the mobile market was rapidly gaining momentum all over the world coming to its peak. The transaction was controversial in Germany because a foreign owner had never before taken over a company of Mannesmann’s format
2. American Online Acquires Time Warner
Number two on the list is the takeover of Time Warner Inc. from American Online (AOL). This merger was valued at $165 billion and it happened at the peak of the 2000 dotcom era. The acquisition happened at a time when AOL enjoyed a massive market share and tried to get a lot bigger by expanding their business.
Unfortunately, the synergies of the merger did not quite materialize. At that point in time, Time Warner’s share price had fallen by 90% compared to the level before the takeover. AOL’s shares also suffered a large loss in value, falling from a high of USD 226 billion to only USD 20 billion.
3. The Acquisition of Verizon Wireless by Verizon Communications
Coming third in the list is the 2013 $130 billion acquisition between Verizon Communications Inc. (VZ) and Verizon Wireless. VZ is an American multinational telecom conglomerate while Verizon Wireless was a dominant player in the wireless services market in the U.S.
4. The Acquisition of DuPont by Dow Chemicals
The acquisition was made in 2017 with a total deal value of $130 billion. The two chemical conglomerates merged to form DowDuPont Inc. with three divisions: specialty products, materials science, and agriculture.
The merger of the companies was driven by a need where a merger of the two companies was the best option. The merger resulted in considerable cost savings.
5. Anheuser-Busch InBev acquires SABMiller
What is considered as the world’s largest brewer, acquired the rival brewer in 2016 at a merger value of about $107 billion. The main goal of the merger was to give birth to a company that could competitively perform in emerging markets with steady growth potential.