For much of of 2016 many headlines were taken up by news of presidential candidates and their inherent distrust of big business. Behind those headlines however, a great number of those businesses were making plans to get bigger thanks to a few handshakes and signings that would eventually spark monumental deals. None of those deals made as of 2016 were enough to be mentioned with the top ten biggest deals of all time, but there were quite a few that involved brands considered big enough to have such industry-jarring consequences that many people have come to distrust. As it’s been seen, an average value of any merger or buy out occurring during 2016 was involved hundreds of millions according to gathered data.
This was somewhat smaller than many top deals brokered a year before , but not by much. Acquisitions have been flourishing despite a rather tense election season that has taken a toll on most dealmakers. It certainly didn’t help that president-elect Donald Trump and presidential nominee Hillary Clinton were both pointing an accusatory finger at a variety of different consolidation efforts that were taking place behind the election process.
They both argued that deals such as that between AT&T and Time Warner would create an entity far too powerful that would eventually begin to flourish at great expense to any average consumer. Regardless of this however, these top five company acquisitions were easily noticed and quite prosperous for those involved.
5. Qualcomm and NXP Semiconductors: $47 billion
2016 saw a great many deals last take place. By October Qualcomm had announced its plans to buy Dutch manufacturer NXP Semiconductors for a very large sum, which would also absorb their debt. This created a buyout of epic proportions. Their purchase gives Qualcomm a much bigger foothold where it had originally been quite weak. It can now has ability manufacture much more than ever before.
4. Sunoco Logistics Energy Transfer Partners: $52 billion
During November Sunoco Logistics Partners and their competitors managed to agree to a bid that both agreed would work towards lowering their borrowing and operating costs. While Sunoco agreed to purchase their competition for a $21 billion, all-stock deal, they would also assume a costly debt on their balance sheets. This seems like a rather strange trade-off to most people, but it makes a lot of sense for both sides.
In truth it is the most sensible merger since each companies are run by a parent empire. According to both companies this combined entity will expect to yield well over $200 million per year by 2019. It will also manage to gain what is called an increased diversification through the competitors’ primarily fuel focused and Sunoco’s primarily liquids focused business. To put it another way, they will benefit one another to a greater extent by this merger than they would remaining apart.
3. British American Tobacco and Reynolds American: $58 billion
The attempt to renew such manic consolidation efforts that have gripped so many throughout an increasingly unstable tobacco industry prompted British American Tobacco to make an huge offer as of October to gain full control of their competition. BAT happened to already own forty-two percent of Reynolds, but was more than ready to purchase that remaining fifty-eight percent with cash and stock. The competition also had a hefty debt balance that would need to be absorbed as well.
These two companies would join at a time when many tobacco firms were already struggling to gain market share, and continually fighting among themselves to come up with highly attractive alternatives to cigarettes. The competition decided to throw a metaphorical wrench into any further proceedings as of November however by demanding a higher price than BAT was originally intending to offered. When this occurred both firms were still in discussion, attempting to sort out just what would happen.
2. Bayer and Monsanto: $66 billion
Existing as another very important proceeding, a German pharmaceutical and chemicals entity, Bayer, stated that it would purchase a US seed and agricultural chemical company, which is Monsanto. By combining these two entities they would control well over a quarter of global supply of seeds and pesticides, which is always assuming such a merger was completed. While Monsanto shareholders gladly accepted this proposition as of December it has yet to push through. It is still waiting on regulatory approval.
Each of these firms have struggled mightily to expand their market all while coping with exceedingly low grain prices and a decreased level of spending on crop sprays. This merger tends to highlight any continuing difficulty that is experienced while discovering any true growth throughout an uncertain agrichemical industry, but Bayer’s chief executive is betting heavily on an eventual rise to increase demand for their products. At this moment they are looking to a future filled with hope that a rising global population will put more pressure on farms to increase their output.
1. AT&T and Time Warner: $85.4 billion
This eventual meeting of two telecom giants has been one of those that has been discussed throughout 2016 with much speculation. It is not only what this merger means in terms of size, but also any and all media exposure it has received during such a controversial election season. Thanks to their ownership of so many different communications systems, which would include their cable-TV infrastructure, broadband internet services, satellite TV systems, and cellular-data networks, these two agencies have an inordinate amount of influence over a broad scope of consumers that find a continual need for their products on a daily basis.
This occurrence was largely criticized by presidential nominee Donald Trump, but it has already been determined that Trump won’t attempt to block such an acquisition. This is largely because Trump’s assembled team have been known to have a fairly hands-off attitude towards big business and its regulation.
Time goes on and many who are already rich get richer. It is only natural to see such high-priced deals and acquisitions that will continue to turn a profit being made. While it is not necessarily a downturn for consumers, it is something that needs to be watched carefully at times.