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| Get Known Merger and Acquisition of companies are always covered by people and media in intricate details because it is not only a merging of two companies, but also a mixture of two mission statements, visions, aims, teams, and course products and services. Mergers take place to provide enterprises with options to effectively sustain and capture more market cap than their competitors. Mergers can strengthen the companies by a great deal, as the pooling of resources, teams, etc. can prove to be very beneficial and lead to the evolution of new strategies, products/services, collaborations, and much more. Mergers can take place due to many reasons, such as cash crunch, limited resources, allied interests, better market capturing capability, etc., and can prove beneficial for the companies that merge. Of course, a merger of companies does not guarantee success, growth, and development, so it proves to be a make-or-break deal for companies that wish to merge. One plus One equals Eleven? Let us look at some of the biggest merger companies of all time: • America Online (AOL) and Time Warner Inc. (TWX) AOL was the largest internet provider in the US back in the late 1900s and that’s when it decided to merge with TWX in 2000, to form a conglomerate with a vision to become a dominant force in the news, music, entertainment, publishing, and internet industries. The deal was one of the biggest in history, worth a boggling $360 billion. AOL lost value and the dot com bubble burst, the merger couldn’t last even a decade and the companies got separated to work independently. • Anheuser-Busch InBev and SABMiller This was a deal worth $104.3 billion between the world’s largest breweries. London-based SABMiller and Belgium-based Anheuser-Busch InBev combined SAB’s Castle Lager with InBev’s Stella Artois, Budweiser, and Corona brands to push them into the fast-growing Latin and African markets. • Exxon and Mobil This deal between the two oil giants, Exxon was the industry leader and Mobil was the next in line proved to be one of the most successful deals in M&A history. The deal was struck in 199, worth $ 81 billion. The deal required major restructuring, leading to the sell-off of more than 2400 stations of the companies that merged. The company is still present and known as Exxon Mobil Corp. • H. J. Heinz and Kraft Foods This $100 billion merger was aimed to create a U.S. food giant and 5th largest drink company in the world. The deal was announced in 2015, and brought major food brands such as Heinz ketchup, Capri Sun, Philadelphia, and HP sauce under one roof, estimating the revenue of the newly formed conglomerate at around $28 billion. • Dow Chemical and DuPont This deal was made to create highly focused and oriented businesses in the field of agriculture, material science, and specialty products. The mega-deal was completed in 2017, worth $130 billion. The companies that merged, now known as DOW DuPont Inc., the merger was expected to bring increased revenue from cost and growth synergies expected around $ 4 billion. Team up or Turn down? Not many companies can strike a deal that not only benefits the two but also brings much more than just pooled resources and shared vision to the table, and that is one of the factors behind why mergers fail. Thus, companies that wish to merge should always know why they want to do the same, and how a merger can bring something that they alone cannot attain. M&A is not about combining two companies, two visions, two opposites but it is about letting go of the old ways and finding a common singularity, a single vision, to set eyes for! 50 June 2021
Biggest Merger Companies of All Times www.theenterpriseworld.com 51
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