In 2022 the value of strategic M&A deals dipped to its lowest level in a decade, and the gap between buyer and seller valuations remained high. But despite the challenging environment certain businesses took advantage of the market’s fluctuations to pursue their M&A goals.
One example was the successful merger of United Technologies and Rockwell Collins, creating the world’s most advanced defense and aerospace manufacturing company for systems. The $135 billion deal was a win-win for both sellers and buyers, as it allowed them to grow their client base and increase their revenue.
In a different instance, LSEG (the owner of Europe’s largest financial markets) purchased US-based competitor NYSEG in order to build the world’s biggest market data provider. This acquisition will help LSEG to better serve its customers by providing them with a wide range of market data, trading tools and analytics, as well as risk management services across international financial markets.
The success of vertical M&A is evident in the $70-billion acquisition of Aetna by CVS Health, which transformed the landscape of healthcare by merging health insurance and pharmacy services into one. The energy sector also witnessed an acquisition that was vertical in the shape of ONEOK’s purchase Magellan Midstream Partners L.P for an astonishing $18.8 billion that is expected to change the infrastructure for oil and gas. The state-owned Chinese chemical company ChemChina combined with its rival Sinochem to become the world’s biggest industrial chemicals conglomerate. This M&A deals is an excellent illustration of how M&A can be used to benefit in times of uncertainty.
