Mergers and acquisitions represent the ultimate in change for a business. They are increasingly becoming strategic choice for organizational growth and achievement of business goals including profit, empire building, market dominance, and long term survival.
It has become a topic of interest to study because these days in MBA Entrance exams, questions related to M&A deals are asked frequently. In addition, in Written Ability Section (WAT) and Group Discussions (GD), issues related to M&A deals are also raised to test the aptitude of the aspirants.
Keeping these aspects in consideration, we have prepared a list of top 10 Merger and Acquisitions (M&A) deals that occurred in 2016. These deals have brought a drastic change in their respective industries. Read and find out about the Top 10 Mergers and Acquisitions of 2016.
1. AT&T Inc buys Time Warner
Deal Amount: USD 85.4 Billion
When: 22 October 2016
About the Merger/Acquisition: AT&T has acquired Time Warner and the new company will be headed by AT&T Chief Executive ‘Randall Stephenson’. For AT&T the deal will help them expand business opportunities and market as well. The prime business of AT&T is core wireless and it seems to have become saturated now.
2. Rosneft Oil Company acquires Essar Oil
Deal Amount: USD 13 billion
Industry: Oil and Gas
When: 15 October 2016
About the Merger/Acquisition: Rosneft has a 49 percent stake in Essar Oil’s refinery, petrol pump and ports. The acquisition includes US 10.9 billion dollars for Essar Oil’s Vadinar refinery and US 2 billion dollars for port terminal that helps feed refinery. This deal is a big achievement for Rosneft because they have got an opportunity to enter the Indian market. With this deal, Rosneft has turned out to be the third largest player in fuel retailing market of India after Royal Dutch and Shell.
3. Reliance Communications and Aircel
Deal Amount: Undisclosed
When: 14 September 2016
About the Merger/Acquisition: Reliance Communications has merged with Maxis communications Berhad (MCB). This merger is the fourth biggest merger in Telecom sector. Both the companies will hold 50 percent in the new entity. The new entity will have an asset base of INR 65000 crores and net worth of INR 35000 crores.
4. Sony Pictures Network India acquired Zee Entertainment
Deal Amount: USD 385 million
When: 31 August 2016
About the Merger/Acquisition: Sony Pictures Network India Pvt. Ltd (SPIN) has acquired Zee Entertainment Enterprises Limited (ZEE) and its subsidiaries. The acquisition will add South Asia’s leading sports network to SPN’s existing portfolio of channels, according to a company release. NP Singh is the CEO of Sony Pictures Networks India. Sony Pictures Networks India is in its 21st year in India.
5. Unilever Plc acquired Blueair
Deal Amount: Undisclosed
Industry: FMCG Sector
When: 16 August 2016
About the Merger/Acquisition: After acquiring Unilever Plc., the company will now enter into the air purifying business that will complement its existing range of water purifying products. On the other hand, Blueair will continue operate under its existing brand name and will remain operations for its existing markets as well.
6. Nokia acquired Alcatel-Lucent
Deal Amount: 15.6 Billion Euros
When: 5 January 2016
About the Merger/Acquisition: As per the deal, Nokia holds 79.32 percent of outstanding Alcatel-Lucent shares and 78.97 percent of the French company’s voting rights.
7. Wipro acquired Health-Plan Services
Deal Amount: USD 460 million
When: 11 February 2016
About the Merger/Acquisition: Wipro signed a definitive agreement to acquire HealthPlan Services from Water Street Healthcare Partners. HealthPlan has grown to become the leading independent technology and Business Process as a Service (BPaaS) provider in the U.S. Health Insurance market.In this deal Wipro will acquire 100 percent of HealthPlan Services shares. The acquisition will help Wipro strengthen its position in U.S. health insurance market.
8. Google acquires Moodstock
Deal Amount: Undisclosed
When: 6 July 2016
About the Merger/Acquisition: With this acquisition, the Moodstocks team will join Google's R&D center in Paris, and will contribute to the development of YouTube and Chrome. The acquisition will now allow the company to take its technology to a much wider audience. Google also mentioned that the engineers and researchers of Moodstocks were developing new algorithms for visual recognition of objects, particularly those viewed by cameras in mobile devices.
9. Dell acquires EMC Corporation
Deal Amount: USD 67 billion
When: 7 September 2016
About the Merger/Acquisition: This deal is one of the largest technology merger in history. The new company will be named as Dell Technologies. With $74 billion in revenue, Dell Technologies will be the world’s largest privately controlled tech company. The merger was extraordinarily complex. Dell, which is privately held, purchased not only EMC but its Byzantine federation of wholly and partially owned subsidiaries.
10. ITC Holdings merges with Fortis
Deal Amount: USD 11.3 BILLION
Industry: Electric Utility
When: 9 February 2016
About the Merger/Acquisition: After this deal Fortis will become one of the top 15 North American public utilities ranked by enterprise value. Under the terms of the transaction ITC shareholders will receive US$22.57 in cash and 0.7520 Fortis shares per ITC share. The Acquisition represents a singular opportunity for Fortis to significantly diversify its business in terms of regulatory jurisdictions, business risk profile and regional economic mix.
We hope that the list of Top 10 Mergers and Acquisitions of 2016 helped you in increasing your knowledge base. You can also use this list as a shortcut to remember all the deals that took place in the year 2016.
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