Top 5 Biggest M&A deals of 2022 so far

The boom in the Global M&A activity that started in 2021 has indeed continued into 2022, and according to Morgan Stanley´s M&A bankers, all the elements that drove 2021’s record activity remain in place. In this article, we’re looking over some of the biggest M&A deals in 2022 so far.

Global M&A activity in 2021 saw record highs, and many were sceptical about whether this would continue into the following year. However, the boom in the M&A sector most definitely has continued. Looking at the most important M&A deals of 2022 so far, we can see a substantial majority of transactions in the gaming and tech sector, showcasing how eager companies are to adapt to the digital environment.

The biggest M&A deals of 2022 so far:

5. DSM´s $21 billion merger with Firmenich

DSM-Firmenich was formed on May 31st,2022, following the $21 billion merger of Swiss flavouring manufacturer Firmenich with Dutch chemical company Royal DSM.

The merger is the last step in DSM´s 20-year transition away from petrochemicals and materials towards sustainable food and health products.

This new company will combine DSM´s ingredients business with Firmenich´s taste business to produce an innovative offering for a fast-growing segment of the food and beverage industry.

Why not have a look at the biggest M&A deals in 2021 here!

4. Orange´s $21.3 billion merger with Grupo MásMovil

A $21.3 billion deal has been signed between Orange and Grupo MásMovil to consolidate their Spanish operations into a 50/50 Joint Venture.

As a result, they have established a new leader in Spain´s cellular telephone market. According to analysts, this might be the start of other similar partnerships in markets such as Italy, Portugal, and the UK.

Synergies from the deal have been estimated at €450m per annum after a four-year post integration period. The transaction is anticipated to be finalised in the second half of 2023.

3. Prologis´ $26 billion merger with Duke Realty

Prologis and Duke Realty, two of the largest global logistics real estate companies, signed a comprehensive merger agreement on June 13th, 2022.

The transaction was valued at $26 billion including debt, and was paid for using Prologis´ equity, therefore firmly establishing Prologis position as the world´s largest logistics real estate operator.

On closing the acquisition, the new firm will have an outstanding portfolio of logistics property, including 153 million square feet of property across 18 US regions, 11 million square feet of development in progress, accounting for over $1.5 billion in investment, and 1,228 acres of land owned and under option.

Duke Realty Chairman and CEO Jim Connor commented that “Together, we will be able to accelerate the potential of our business and better serve tenants and partners.”

2. Broadcom acquired VMware for $61 billion

On May 26th 2022, the chip giant Broadcom acquired the software firm VMware in a cash and stock deal worth $61 billion.

However, concerns over perceived culture differences at both companies have sparked backlash in the market, with Broadcom stock falling almost 20% in the month following the deal, and talented VMware personnel leaving due to hints remote work coming to an end and overall uncertainty.

VMware´s CEO Raghu Raghuram has been eager to highlight the benefits of the deal, noting that the synergies between VMWare´s software and Broadcom´s overall infrastructure could be significant.

1. Microsoft acquired Activation Blizzard for $68.7 billion

 On January 18th, 2022, Microsoft acquired Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. This deal was a significant step toward Microsoft’s entry into the gaming market.

Microsoft became the world’s third-largest gaming company by revenue, behind Tencent and Sony.

The acquisition includes iconic franchises from Activision, Blizzard and King studios such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming.

Bobby Kotick will remain CEO of Activision Blizzard, and he and his team will continue to lead efforts to develop the company’s culture and accelerate business growth. After the transaction is completed, the Activision Blizzard business will report to Phil Spencer, CEO of Microsoft Gaming.

The most talked about M&A deal at the moment?

After initially rejecting Elon Musk’s overtures, Twitter’s board of directors accepted Musk´s $44 billion offer for the firm on the 25th of April.

However, weeks after, Musk tweeted that he was putting his bid on hold due to alleged “false and misleading” statements during negotiations regarding the prevalence of fake or spam accounts on Twitter.

Consequently, Twitter sued Musk for attempting to abandon the deal, which led Musk to countersue Twitter. A trial date has been set for the near future.

An extra layer has been added to the trial since Delaware Court ruled that Musk could use Twitter´s former security executive, Peiter Zatko´s, whistle-blower complaint. This stated that the company misled the public about its security practices and how it fights hackers and spam.

The situation is ever changing, and we look forward to hearing about the future of this deal- if there is one.

Did you find that interesting? Read our article on 2020´s biggest M&A deals here.

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ONEtoONE is specialized in international middle-market M&A advisory, having participated in more than 1500 mandates. We continuously focus on improving the techniques to achieve the best possible price for our clients. We advise on mergers and acquisitions, strategic planning, and valuation. If you need advice for any possible corporate operation, do not hesitate to contact us.