How to spend $5 trillion: A record-breaking year in deals

NEW YORK -- Companies around the world spent a record $5.03 trillion on acquisitions in 2015, according to Dealogic, as slow worldwide economic growth and low interest rates pushed companies to combine forces.

See Full Article

Corporate deal making has roared back to life as the Great Recession has faded from view. Dealogic says the value of global deals rose more than 30 per cent in 2014 and again in 2015. The highest price tag came in November, when Pfizer and Allergan announced the biggest pharmaceutical deal in history. Here are the 10 largest acquisitions announced during the year:

Pfizer and Allergan

Pfizer, the maker of cholesterol fighter Lipitor, impotence treatment Viagra and fibromyalgia drug Lyrica, agreed to buy Allergan in November. The $148.57 billion deal would be the second-largest corporate merger ever. It would give Pfizer control of Botox and move the company's headquarters to Ireland, cutting its taxes. Pfizer would also become the world's largest drugmaker in terms of sales.

AB InBev and SABMiller

The biggest beer maker in the world wants to get even larger. The company behind Budweiser, Corona and Stella Artois agreed to buy the maker of Miller Genuine Draft and Peroni for $105.56 billion in October. The move would expand AB InBev's business in Africa, Asia and other key developing markets. As part of the deal, SABMiller agreed to sell the Miller brand to Molson Coors.

Royal Dutch Shell and BG Group

When Royal Dutch Shell agreed to buy BG Group in April, oil prices had taken a steep fall from their 2014 highs. But they were going to get a lot worse. Oil and gas company Shell agreed to buy BG Group for $69.83 billion to expand its liquid natural gas business. Natural gas prices have tumbled since then, and in December they reached their lowest levels in 16 years.

Dell and EMC

In October PC maker Dell agreed to pay $65.97 billion for EMC, which makes data storage hardware and sells cloud storage and security products. Dell's personal computer sales have been weak for years, but the company has been expanding its software and service businesses. Dell was taken private in 2013 by founder and CEO Michael Dell.

Dow Chemical and DuPont

Dow Chemical agreed to buy competitor DuPont in a deal that will combine two chemicals companies that were founded in the 19th century. Both Dow and DuPont were pushed by activist investors to break up or find other ways to revitalize their businesses. When the $62.38 billion deal closes, Dow DuPont will make products including Ziploc bags, Saran wrap, Teflon coatings and Nylon and Kevlar fibers. Dow DuPont will then break into three separate companies with more specific focuses.

Charter Communications and Time Warner Cable

Charter Communications agreed to buy Time Warner Cable for $56.80 billion in May, and it will also spend about $10 billion to buy Bright House Networks. That will make Charter one of the largest providers of TV and internet services in the U.S. Cable provider Comcast tried to buy Time Warner in 2014, but the U.S. government opposed that deal.

Heinz and Kraft Foods

One of the largest food companies in the world was formed when H.J. Heinz bought Kraft Foods for $53.83 billion. The purchase, which was announced in March and closed in July, brought together brands including Oscar Meyer, Capri Sun, Ore-Ida, Maxwell House, Kool-Aid and Heinz ketchup. The tie-up was engineered by Warren Buffett's conglomerate Berkshire Hathaway and Brazilian investment firm 3G Capital.

Anthem buys Cigna

A wave of health insurance combinations swept the market in July as Anthem announced it would buy Cigna for $51.93 billion just after Aetna said it would buy Humana for $35.04 billion. Anthem is the second-largest U.S. insurance company in terms of enrolment, and Cigna is fourth. The combined company would cover almost 50 million people. Anthem sells health coverage to individuals and employees of small businesses and serves Medicare, Medicaid and federal employees. Cigna sells group disability and life insurance in the U.S. and has an international business.

EBay spins off PayPal

Online commerce giant EBay spun off its payments system unit PayPal for $49.16 billion in July. That was almost a year after eBay announced PayPal would become a separate company. Investors value PayPal more highly than its former parent, as PayPal has a market capitalization of about $45 billion compared to eBay's $33 billion.

Teva buying Allergan Generics

Teva, an Israeli company that is already the world's largest manufacturer of generic drugs, will get even bigger by buying the generic drugs business of Botox maker Allergan. Teva had been looking to expand, as earlier in the year it pushed to buy generic drugmaker Mylan. It dropped that bid after agreeing to its $40.5 billion deal with Allergan.



Advertisements

Latest Economic News

  • CGI Group moves to expand in northern Europe with friendly takeover of Affecto

    Economic CTV News
    HELSINKI - Canada's largest publicly traded IT services business is moving to expand its presence in Europe through the acquisition of Affecto PLC in a friendly deal that would add about 1,000 staff in northern Europe. Source
  • Asian stocks mixed after Wall Street sees gains

    Economic CTV News
    BEIJING - Asian stock markets were mixed Tuesday after Wall Street gained as investors looked ahead to this week's gathering of central bankers in Jackson Hole, Wyoming. KEEPING SCORE: Hong Kong's Hang Seng index gained 1 per cent to 27,421.58 points and Seoul's Kospi added 0.3 per cent to 2,362.40. Source
  • Average Canadian mortgage nears $200K, up 5% in a year

    Economic CBC News
    Canadians owe more than ever before on their mortgages, but fewer and fewer borrowers are falling behind on their payments. That's one of the major takeaways from a report published Tuesday from credit monitoring firm TransUnion, which looked at every active credit file across the country to gauge the financial health of borrowers and consumers. Source
  • Border-beer case could end Canadian federalism, N.B. government argues

    Economic CTV News
    FREDERICTON - A battle over cross-border beer sales threatens to end Canadian federalism as it was originally conceived, the New Brunswick government argues in a submission to the country's top court. In a statement of facts to the Supreme Court of Canada, the province says allowing a New Brunswick man to purchase alcohol in a Quebec border town could ultimately "redesign Canadian federalism. Source
  • Stop the presses: Globe and Mail ends print edition in Maritimes

    Economic CBC News
    The Globe and Mail will stop delivering its print edition to the Maritimes, the newspaper said Monday. Phillip Crawley, the publisher and CEO, said it followed the decision made in 2013 to stop printing in Newfoundland and Labrador. Source
  • Globe and Mail to scrap print edition in Atlantic Canada later this year

    Economic CTV News
    TORONTO -- The Globe and Mail is putting a stop to its daily print edition across Atlantic Canada later this year. Publisher Phillip Crawley says the national newspaper plans to halt production for the East Coast version on Nov. Source
  • German softwood imports up tenfold in wake of U.S. duties on Canadian industry

    Economic CTV News
    OTTAWA -- U.S. imports of softwood from Germany have grown tenfold in the first half of the year as punishing duties pushed imports of Canadian softwood down. RBC Capital Markets analyst Paul Quinn says Canadian lumber producers have plunked down an estimated $500 million so far in countervailing and antidumping duties after the U.S. Source
  • Home Capital class-action lawsuit settlement approved by Ont. court

    Economic CBC News
    An Ontario court has approved the settlement of a $29.5 million class-action lawsuit by investors against alternative mortgage lender Home Capital Group Inc. The Ontario Securities Commission approved a settlement earlier this month with the Toronto-based company and three former executives who agreed they failed to tell investors quickly and completely about fraudulent activity by some mortgage brokers associated with the lender. Source
  • Court approves Home Capital class-action lawsuit settlement

    Economic CTV News
    LONDON, Ont. - An Ontario court has approved the settlement of a $29.5 million class-action lawsuit by investors against alternative mortgage lender Home Capital Group Inc. The Ontario Securities Commission approved a settlement earlier this month with the Toronto-based company and three former executives who agreed they failed to tell investors quickly and completely about fraudulent activity by some mortgage brokers associated with the lender. Source
  • Transat shares surge after positively revising summer earnings outlook

    Economic CBC News
    Shares of Transat A.T. surged on Monday to the highest level since early 2015 after the travel company signalled that it is having a significantly more profitable summer season than it had expected. The Montreal-based company's shares rose as high as $8.85 on Monday before easing back to $8.70 in intraday trading on the Toronto Stock Exchange, up 74 cents from Friday's close. Source