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Finance

These Are the 12 Biggest Mergers and Acquisitions of 2016

Lucinda Shen
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Lucinda Shen
Lucinda Shen
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Lucinda Shen
By
Lucinda Shen
Lucinda Shen
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June 13, 2016, 6:52 PM ET
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BERLIN, GERMANY - AUGUST 07: Zwei Maenner in Anzuegen geben sich die Hand on August 07, 2014 in Berlin, Germany. (Photo by Thomas Trutschel/Photothek via Getty Images)Photograph by Thomas Trutschel Photothek via Getty Images
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In a move that no one saw coming, Microsoft announced it would acquire social network, LinkedIn, in what is the largest tech deal of 2016 Monday morning.

So where does it stand on the board among all sectors?

Many market watchers have predicted that 2016 will still be a robust year for mergers and acquisitions, largely boosted by a series of smaller deals. It’s not expected to beat 2015’s figures, when deal volumed skyrocketed above $5 trillion, buoyed by several mega-deals—some of which have since fallen through.

So far, numbers suggest the predictions are on track. In 2016, U.S. mergers and acquisitions value total about $642 billion, 18% lower from the same period in 2015—$786 billion, according to Dealogic, an analytics firm tracking mergers and acquisitions.

 

Scroll down to see which companies played a part in the biggest mergers and acquisitions of the year:

Deal value, courtesy of Dealogic, also includes the target’s net debt.

12. Sherwin-Williams takeover of Valspar for $11.3 in March

Sector: Basic materials

Sherwin-Williams agreed to snap up its competitor, Valspar, in March. The deal would give Sherwin-Williams better access to big box retailers such as Home Depot and Lowes, where Valspar already has a strong presence. Sherwin though, has made its way mainly through its own stores.

The transaction would also accelerate Sherwin’s growth into international markets in Asia, Europe, and the Middle East.

11. The merger between NorthStar Asset Management Group, its former parent NorthStar Realty Finance, and Colony Capital for $11.3 billion in June

Sector: Finance

The three companies agreed to merge into a single real-estate investment in early June, according to the Wall Street Journal. The combined company, with roughly in asset, is to be named Colony NorthStar.

“We are confident that Colony NorthStar with its lower leverage, larger balance sheet and improved liquidity profile is poised for meaningful multiple expansion and substantially enhanced long-term returns for shareholders,” David Hamamoto, executive chairman of NorthStar Asset Management, which spun off from NorthStar Reality Finance in 2013, said in a statement.

10. The $11.4 billion acquisition of Fortis by ITC Holdings announced in February

Sector: Electric Utility

Canadian utility operator Fortis announced plans to buy Novi-Mich.-based ITC Holdings in February. For Fortis, the acquisition would give the company a foothold in the Midwest, and give the combined company a chance to expand.

9. Great Plains Energy’s Bid for Westar Energy Worth $12.2 billion

Sector: Electrical Utilities

Great Plains Energy, based out of Kansas City, Mo., and Westar Energy, based out of Kansas, announced the deal late May in a cash and stock transaction.

“The utility industry is facing rising customer expectations, increasing environmental standards and emerging cyber security threats. These factors, coupled with slower demand growth for electricity, are driving our costs and customer rates higher,” said Terry Bassham, chairman and chief executive officer of Great Plains Energy. By buying Westar however, the company hopes to reduce expenses and combine operations.

8. The $12.4 billion acquisition of ADT by Protection 1

Sector: Security

In February, a security service for residential and small business properties, ADT, agreed to be acquired by an affiliate of Apollo Global Management, and merged with another home security firm, Protection 1. The merger would give the combined company greater reach throughout the U.S. and Canada, and also help ADT accelerate its expansion into the commerical sector.

 

7. A $12.8 billion merger between IMS Health Holdings and Quintiles Transnational Holdings

Sector: Biotech

Contract medical research provider, Quintiles, agreed to merge with healthcare information company, IMS Health to make a giant known as Quintiles IMS in an all-stock deal.

“This combination addresses life-science companies’ most pressing needs: to transform the clinical development of innovative medicines, demonstrate the value of these medicines in the real world, and drive commercial success,” Ari Bousbib, chairman and CEO of IMS Health said in a statement.

 

6. The $13.2 billion acquisition of Columbia Pipeline Group by TransCanada

Sector: Oil and Gas

The company behind the controversial Keystone XL oil pipeline, TransCanada, agreed to buy Columbia Pipeline Group for $10.2 billion in March, making the combined giant one of North America’s largest regulated natural gas transmission businesses in an all cash deal.

For TransCanada, the deal allows them to take Columbia off its list of rivals, and also access the cheaper gas from Marcellus and Utica shale regions. Competition from the latter has been eating away at TransCanada’s revenue.

5. The $13.6 billion bid to buy Starwood by Marriott International

Sector: Service

Perhaps one of the most tense mergers and acquisitions of 2016 that ended with Starwood’s top bidder, Anbang Insurance, calling it quits, the acquisition of Starwood by Marriott International takes number four on the list. After several months of bidding, the two companies agreed to merge in March, becoming the world’s largest hotel chain in a cash and stock deal.

The merger would give the combined company scale to combat smaller, and rapidly growing competitors such as Airbnb. Its new size would also allow the company to negotiate better fees with online booking sites including Expedia.

4. The $16.6 billion deal for Tyco International by Johnson Controls

Sector: Auto Parts

In January, car parks manufacturer, Johnson Controls and Ireland-based security systems maker, Tyco International agreed to merge in a deal that would help Johnson Controls dodge the high, about 35%, corporate tax rate in the U.S. by moving headquarters to Ireland.

The deal will lead to at least $500 million in savings in the first three years, and at least $150 million in annual tax savings, the companies said.

3. The $28.1 billion acquisition of LinkedIn by Microsoft

Sector: Tech

On Monday, Microsoft announced it would buy social networking company, LinkedIn for a smooth $26.2 billion in an all-cash deal. That took LinkedIn’s stock up 47% in trading. The deal, Microsoft’s’ largest ever by a $20 billion long shot, will “accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics,” according to Microsoft CEO Satya Nadella.

The deal is also sixth largest tech merger and acquisition on record, according to Dealogic.

2. The $30.6 billion bid for St Jude Medical by Abbott Laboratories

Industry: Medical Appliances and Equipment

In April, Abbot Labs announced plans to buy St. Jude Medical for $25 billion in a cash and stock deal, and assume or refinance St. Jude’s net debt of about $5.7 billion.

One of the flurry of mergers and acquisitions in the healthcare space this year, the combined company will have a stronger medical-devices business in an increasingly competitive market. Increased scale will also give Abbot Labs more pricing power in the market.

1. The $32 billion deal between Shire and Baxalta

Industry: Pharmaceuticals

After a lengthy six month courtship, London-based drugmaker Shire announced plans to buy Baxalta in a $32 billion cash and stock offer, giving Shire a better foothold in treating rare diseases.

The year though, is just halfway through. One major deal that could supplant the crown is the back-and-forth between German pharmaceutical giant, Bayer, and its intended target, Monsanto. Bayer offered a whopping $62 billion to the latter in May. Monsanto then rejected the offer, calling the proposal “incomplete and financially inadequate.” Discussions for that deal are still ongoing.

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Lucinda Shen
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