The second-largest deal of the year was announced by German pharmaceutical and chemicals giant Bayer, which said it would buy U.S. The two companies were still in talks at press time. In November, however, Reynolds threw a wrench into the deal machinery, reportedly demanding a higher price. The combination of the two companies would come at a time when tobacco companies have been struggling to gain market share, and fighting to create attractive cigarette alternatives. As of the third quarter, Reynolds also had some $ 12.6 billion in long-term debt. BAT already owns 42% of Reynolds the announced deal would involve purchasing the remaining 58%.
#BIG MAC DEAL 2016 FULL#
Renewing the consolidation mania in the tobacco industry, British American Tobacco (bti) in October offered $ 47 billion in cash and stock for full control of Reynolds American. British American Tobacco and Reynolds American: $ 58 billion According to the two companies, the combined entity is expected to yield over $ 200 million in annual savings by 2019, while also attaining what the companies called, in a November statement, “increased diversification through the combination of Energy Transfer Partner’s primarily gas focused and Sunoco’s primarily liquids focused businesses.”ģ. In one sense, this deal is like an in-house merger, since both companies are controlled by the gas and oil pipeline empire Energy Transfer Equity (ete). Sunoco agreed to purchase Energy Transfer Partners in a $ 21 billion all-stock deal, while also assuming some $ 30 billion in long-term debt on Energy Transfer Partners’ balance sheets. In late November, Sunoco Logistics Partners and Energy Transfer Partners agreed to merge in a bid to lower borrowing and operating costs. Sunoco Logistics and Energy Transfer Partners: $ 52 billion For Qualcomm, the purchase offers it a bigger foothold in areas where it had been weak, including chips for self-driving cars, mobile payment devices, and sensors for drones and other smart devices.Ĥ. In late October, San Diego-based Qualcomm (qcom) announced plans to buy Dutch manufacturer NXP Semiconductors for about $ 47 billion including debt-making it the biggest semiconductor deal on record, according to Dealogic. The latter half of the year was when mergers and acquisition announcements began happening in earnest. Qualcomm and NXP Semiconductors: $ 47 billion Either way, you can scroll down to see the 5 biggest deals. It’s too early to tell whether the Trump administration, which seems likely to be generally business-friendly, will try to block any of this year’s big mergers and acquisitions. President-elect Donald Trump and Democratic presidential nominee Hillary Clinton both pointed disapproving fingers at various consolidations announced during the election cycle, arguing that the deals, especially one between AT&T and Time Warner, would give the combined entities too much power at the expense of consumers. M&A activity flourished despite a harrowing election season for dealmakers. That was smaller than in 2015, when the average deal was worth $ 115.4 million, but greater than the average for deals made between 20, which was around $ 77.1 million. Overall, the value of the average merger or acquisition announced in 2016 was around $ 104.2 million, according to data from analytics firm Dealogic.
#BIG MAC DEAL 2016 CRACK#
While none of the largest M&A deals announced this year would be big enough to crack the all-time Top 10, there were plenty that involved major brands and potentially industry-shaking consequences. And behind the scenes, many of those businesses made plans to get bigger, with the help of some monumental deals. The presidential candidates grabbed headlines this year by appealing to voters’ distrust of big business.
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