Mergers and Acquisitions 2022: The last few years have been financially volatile for not just everyday folks but even billion-dollar corporations as well.

In 2022, several high profile mergers and acquisitions took place. Some happened due to personal vendettas, some to bail out a failing company, but most mergers and acquisitions transpired to increase profits.

Today, we take a look at some of the biggest and most famous mergers and acquisitions of 2022.

What are Mergers and Acquisitions?

A merger is a process in which two or more companies unite to form a single entity. It results in the creation of a new company, which often takes the names of all the companies involved in the merger (ex. Metro-Goldwyn-Mayer Studios was formed by combining Metro Pictures, Goldwyn Pictures, and Louis B. Mayer Pictures). Mergers are usually friendly and intricately planned, and there is no power difference between the merged entities.

Acquisition occurs when one company purchases another, typically by acquiring a majority (50% or greater) stake in the company. The acquired company may or may not keep its name, brand value, and staff. But in most cases, the acquired company retains its original method of functioning. However, in cases of hostile takeovers, the acquiring company takes charge of the management and decides the acquired company’s future trajectory.

Top 10 Most High Profile Mergers and Acquisitions of 2022

1. Elon Musk/Twitter

In early 2022, American billionaire Elon Musk acquired the social media platform Twitter for $44 billion in a hostile takeover. At first, Twitter was welcoming of the offer as it was well above their valuation, but Musk’s strategies and vision for the company didn’t sit well with the staff and board members.

A court battle ensued after Musk went back on his offer, but the controversial billionaire soon relented and acquired Twitter. Elon Musk became the owner and CEO of Twitter after firing Parag Agrawal. Musk also laid off nearly half the employees, while many others quit. Musk plans to combat the misinformation and spambots on Twitter and also promote "free speech."

2. Tata Group/Air India

Tata Group, India’s largest conglomerate, acquired the nationalised airline Air India in 2022. Tata also announced the merger of Air India with Vistara, a joint venture between Tata Sons and Singapore Airlines. Air India had been struggling for years, and the travel restriction during the COVID-19 pandemic only added to its woes. However, Tata is doing everything possible to restore Air India to its former glory.

3. Adani Group/NDTV

The Indian multinational conglomerate Adani Group, led by billionaire Gautam Adani, acquired the news channel NDTV in one of the most controversial acquisitions of recent years. The deal was criticized both domestically and internationally. Adani’s hostile takeover was termed an attack on freedom of speech and freedom of the press. Soon after the announcement, NDTV’s lead anchor, Ravish Kumar, a staunch critic of the ruling BJP government, tendered his resignation. NDTV founders and directors Prannoy and Radhika Roy also quit their posts.

4. PVR/INOX Merger

India’s two leading cinema franchises, PVR and INOX, merged in 2022 to create the largest multiplex chain in the country with over 1500 screens. The pandemic was particularly tough on the film industry, and more so on theatres. The PVR and INOX merger will result in synergies in the form of advertising revenues, reduced rental costs, and convenience fees for the merged entity, which will be called PVR-INOX.

5. HDFC LTD/HDFC BANK Merger

India’s largest housing finance company, HDFC Ltd and the largest private sector bank, HDFC Bank, merged in 2022 in one of the biggest financial deals in India. The $40 billion deal will result in a single entity, but the services of HDFC Ltd and HDFC Bank will continue to be provided separately.

6. Adani Group/Ambuja Cement

Gautam Adani is fast-rising in the world. In a span of a few years, he has claimed a spot as one of the richest people in the world. Along with the acquisition of NDTV, the Adani Group also acquired a majority stake in Ambuja Cements and its subsidiary, ACC Ltd. Adani is now the second largest cement manufacturer in the country after Aditya Birla Group’s UltraTech.

7. Microsoft Activision/Blizzard

American tech giant Microsoft acquired the game-holding company, Activision Blizzard, for $68.7 billion in 2022’s biggest acquisition. Microsoft, founded by Bill Gates and currently led by Satya Nadella, is an American tech company that manufactures gadgets, operating systems, and software.

8. Moj/MX TakaTak Merger

The two leading video-sharing platforms in India, Moj and MX Takatak, merged in 2022. The new entity will be the largest short-video-sharing app  with 300 million monthly active users. The new platform could prove a huge competitor to China’s Tik Tok.

9. Broadcom/VMWare

In another noteworthy acquisition, the American semiconductor manufacturing company Broadcom acquired VMware Inc, an American cloud computing and virtualization company for $61 billion.

10. Zomato/Blinkit

Indian food aggregator platform Zomato acquired the quick-commerce company Blinkit for Rs 4,447 crore ($567 million). Zomato mainly operated in the food delivery and restaurant hosting businesses previously but with the acquisition of Blinkit, the company will be able to step foot in quick commerce field as well.

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