December 1, 2015

Costly mergers from 2015

There have been many expensive and notable merger deals this year.

While the year has not yet drawn to a close, there have still been many notable mergers.

The Pfizer-Allegran is one of the most recent mergers and the most expensive with a price tag of $160 billion. To put this figure into perspective, Zacks Investment Research compared this deal with the GDP statistics of many countries. Shockingly, countries such as Serbia, Uruguay, Morocco and Angola do not have GDP numbers exceeding the price of the Pfizer-Allegran deal.

"The acquisition, which would create the world's largest drugmaker and shift Pfizer's headquarters to Ireland, would also be the biggest-ever instance of a U.S. company re-incorporating overseas to lower its taxes. … The deal enhances offerings from both Pfizer's faster-growing branded products business, with additions like Botox, and its older established products unit," Ransdell Pierson and Bill Berkrot at Reuters explain.

Another monumental merger is the Anheuser-Busch-SABMiller deal, which is estimated at $107 billion. While this deal is remarkable due to its cost, what is more interesting is the fact that when Anheuser-Busch bought out its main competitor SABMiller, the nation's four top selling beers, Budweiser, Coors Light, Miller Lite and Bud Light, are now owned by the same company.

Finally, one of the most widely talked about mergers is the Dell-EMC deal from earlier this fall. For $67 billion, this deal is far less than the previous mergers mentioned, yet it is notable due to it being the most expensive tech industry acquisition ever. Fascinatingly, though Apple products are highly sought after, Dell is one of the globe's leading manufacturers of personal computers, ranking in the top five during the fourth quarter of 2014.

For companies looking to pursue a merger or acquisition, consult an M&A advisor today. With expert assistance, your company can make a deal that exceeds its projected growth goals. Contact us today to see how your company can benefit from a partnership with our skilled team of professionals.