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The top Mergers of 2015

Early today, I discussed the Pfizer ( PFE ) and Allergan ( AGN ) merger that went for a record $160 billion . To contextualize how significant the value is, the graph below compares the value of the Pfizer-Allergan merger to the GDP of 10 different nations:

This graph is a mere sampling. If you were to go to the World Bank Database to view GDP statistics, you will be rather shocked how many nations do not have a GDP above $160 billion, and Pfizer agreed to spend that amount with the stroke of a pen.

This gargantuan merger was not the first of 2015. There have been multiple "record-breaking" mergers and acquisitions involving notable companies. Let's take a look at some of this year's most notable ones.

1. Anheuser-Busch-SABMiller: $107 billion

Before the Pfizer-Allergan merger, the Anheuser-Busch InBev ( BUD ) acquisition of its primary rival SABMiller Plc ( SBMRY ) held the title of the largest merger of 2015. The deal between the two brewing companies was roughly worth $107 billion.

(Please read " Mega Merger 2015: The New and Expansive World of AB InBev-SABMiller " for an in-depth feature of this merger)

To conceptualize how large AB InBev-SABMiller is, the top four selling beers in the United States are all owned by one company. Here is a graph - data provided by VinePair via a Huffington Postarticle on the subject of beer - detailing the sales and the number of cases purchased of the top five beers in the United States:

If it was not for Corona Extra, the AB Inbev-SABMiller would produce the top five selling beers in the United States (Natural Light is sixth on the VinePair list).

2. Dell-EMC: $67 Billion

Dell Inc. and EMC Corporation ( EMC ) announced back in October that the two companies have signed a definitive agreement under which Dell will acquire EMC. The deal is valued at roughly $67 billion, which is the largest technology acquisition ever to occur.

(Please read " Dell Acquires EMC for $67 Billion " for an in-depth feature of this merger)

Dell is one of the world's top producers of personal computers. According to data from Garter, Inc. ( IT ) Dell was in the top five of companies during the 2014 fourth quarter in units shipped. Not even the significantly cultural relevant Apple ( AAPL ) managed to crack the top five. Here is a graph on worldwide unit shipment estimates and market share percentages of Dell and other notable PC companies:

It is rather fascinating that Dell, Lenovo ( LNVGY ), and Hewlett Packard ( HPE ) together control roughly 50% of the worldwide market share of personal computer shipments.

3. IBM-Weather Company: Undisclosed

Last but not least, IBM ( IBM ) announced back in late October that the company will purchase the Weather Company's digital assets, most notably the Weather Channel mobile app, weather.com, WSI, and - vastly crucial for IBM - the Weather Company's forecasting data and technology.

(Please read " IBM Purchases Digital Branch of the Weather Company " for an in-depth feature of this merger)

The actual number was not disclosed upon the announcement of the merger. However, earlier in October, IBM announced an acquisition involving the most fitting of companies for this article, Merge Healthcare, for $1 billion to enhance Watson , IBM's artificial intelligence and predecessor to Skynet.

Using this figure, let's compare the amount IBM purchased Merge Healthcare to some of the top grossing domestic movies with figures adjusted for ticket price inflation. The data is provided from Box Office Mojo :

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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