Top 2021 Mergers: What Companies Merged in 2021?
Jan 27, 2022
A large number of M&A deals in 2021 helped boost record buyout figures — exceeding $5 trillion. Perhaps this indicates the adaptation of global business to new rules. Large domestic transactions prevailed, but large international mergers helped increase figures.
Reuters reports that America led M&A activity in 2021, accounting for about half of the total. Notably, SPAC transactions accounted for approximately 10% of the volume.
What companies are merging in 2021?
There is a lot of interesting insightful about the eventful past year, so let’s look at some of the largest merger deals of 2021 for some fun facts.
1. AT&T’s WarnerMedia and Discovery, Inc.
The Discovery Inc. and AT&T Inc. WarnerMedia merger is one of the top M&A deals of 2021, with a value of $43 billion. The deal joined forces for a new entertainment program. David Zaslav, Chief Executive Officer of Discovery, will chair the new venture. The ownership stake breaks down with AT&T retaining 71% of the new venture.
2. Altimeter Growth Corp. and Grab Holdings Inc.
The deal between these companies was valued at $40 billion. After the merger with Altimeter Growth, the Grab application will be made public. Also, the new organization’s ticker symbol — GRAB — now is listed on the NASDAQ.
3. Canadian Pacific Railway Ltd. and Kansas City Southern
The $33.6 billion deal was big merger news in 2021 as the parties aimed to create the leading railroad of the 21st century — a route from Mexico to Canada. However, in September, Kansas City refused to cooperate with CN and merged with Canadian Pacific Railway Ltd. Thus, the companies entered into a deal worth $31 billion. It is going to provide for the US-Mexico-Canada network similarly.
4. Rogers Communications and Shaw Communications
The $26 billion deal between Rogers Communications and Shaw Communications will accelerate 5G rollouts, create jobs, and increase investments in Western Canada. Also, over the next five years, an investment of $2.5 billion is expected in the 5G network. Consequently, rural and urban consumers will benefit from improved services.
5. Sony India and ZEEL
SPNI and ZEEL will create a company with shares registered in India. The terms state that SPNI will have a balance of $1.5 billion at the close, which includes an infusion from ZEEL’s founders and SPNI shareholders.
Since Sony Pictures Entertainment is the parent company of SPNI, it will own 50.86% of the shares of the newly created organization, the founders of ZEEL — 3.99%, with other shareholders retaining — 45.15%.
6. Aker BP ASA and Lundin Energy AB
This alliance is one of the most recent M&A deals of 2021, which intended to create the second-largest gas and oil producer on the Norwegian continental shelf. Moreover, it expanded the influence of Kjell Inge Rokke, the owner of Aker ASA, who will receive a 21.2% stake in the combined venture. The remuneration to shareholders is more than $10 billion. BP is said to hold 15.9% of the shares.
7. VICI Properties and MGM Growth Properties
According to the CEO of VICI Properties, the deal created America’s leading real estate investment trust (REIT) in the gaming and entertainment industry. As a result of the merger, experts estimate the value of VICI at $45 billion. In exchange for each Class A share, MGM Growth Properties received 1,366 VICI shares.
8. Cabot Oil & Gas and Cimarex Energy
Cabot Oil & Gas teamed up with Cimarex Energy to create a new business valued at $17 billion. Shares were divided at 49.5% to Cabot Oil & Gas and 50.5% to Cimarex Energy. Thomas Jorden, President of Cimarex Energy, became CEO of the joint venture. He said that the deal created a solid base with a high financial strength to ensure consistent returns.
9. Sterling Bancorp and Webster Financial
According to the terms, Webster will own 50.4% of the newly created organization and Sterling 49.6% after the merger. The newly-formed company is called Webster. It owns$63 billion in assets — $52 in deposits and $42 in loans.
10. ICON and PRA Health Sciences
Under this agreement, PRA Health Sciences has become a division of ICON. Consequently, the new company will operate under the ICON name. PRA retains 34% of company shares and ICON 66%. The parties expect the deal to mark the beginning of a cutting-edge clinical research and healthcare organization.