In 2022, the value of strategic M&A fell to its lowest point in a decade. The gap between seller’s and buyer’s valuations was still large. But despite the challenging environment some companies benefited from fluctuations to pursue their M&A goals.
A successful merger between United Technologies & Rockwell Collins resulted in the world’s largest manufacturing of aerospace and defense systems company. The deal valued at $135 billion and was a win-win for the buyers and sellers alike that allowed them to grow their customer base as well as increase the amount of revenue they earn.
In a similar way, LSEG, the owner of Europe’s biggest financial markets, bought a the US-based competitor NYSEG to make the world’s largest market data provider. This acquisition strategic will allow LSEG to better serve its clients by offering them extensive data, trading tools and analytics, as well as risk management services across all international financial markets.
The success of vertical M&A can also be seen in the acquisition of Aetna for $70-billion by CVS Health. This deal changed the face of healthcare by combining health and pharmacy insurance into one. The energy sector also witnessed an acquisition that was vertical in the form of ONEOK’s purchase of Magellan Midstream Partners L.P for a staggering $18.8 billion which is expected to transform the entire landscape of infrastructure for oil and gas. In a similar manner, the state-owned Chinese company ChemChina joined with its competitor Sinochem into the world’s biggest industrial chemicals conglomerate. This is an obvious sign of the importance of leveraging M&A in times of uncertainty and changes.
