Though 2019 was a down year for merger and acquisition activity, there were still some notable deals that had broader repercussions for their respective industries.
According to the Boston Consulting Group, there were 15,400 deals through the first half of 2019 — about 3,000 fewer than the first half of 2018. Deal value declined double-digits in Europe and Asia, though North America deal values were up 16 percent.
Here are some of the most notable deals of 2019, and the effect that they could still have going forward:
United Technologies + Raytheon
The all-stock deal between the two firms created a juggernaut defense and aerospace force worth $121 billion. Together, the united companies will become the second-largest in their field in terms of annual revenue at $74 billion, following only Boeing. It will also earn approximately $41 billion in military sales, more than half of its total revenue.
United Technologies Chairman and CEO Greg Hayes will take the reins of the newly formed company, with the deal expected to close in the first half of 2020. United Technologies shareholders own 57 percent of the company, while Raytheon will own about 43 percent.
Bristol-Myers Squibb + Celgene
Bristol-Myers Squibb's cash-and-stock acquisition of Celgene helps further cement itself as a leader in the biopharmaceutical space. Including debt, this was the largest health-care deal on record according to Refinitiv.
Celgene helped augment Bristol's cancer drug portfolio and also gave the new parent company the scale to compete for at least the near-term future. The two companies together have nine products and report more than $1 billion in annual sales.
Saudi Aramco + Saudi Basic Industries Corporation
Saudi Aramco purchased a 70 percent stake in Saudi Basic Industries Corporation, a chemical and metals manufacturing company and the largest public company in the Middle East.
The world's largest oil producer purchased the shares from Saudi Arabia's wealth fund, which could help boost the country's economy and expand its businesses past oil. The deal also gives Aramco the ability to grow its refining and petrochemical sectors.
CBS and Viacom
The on-again-off-again couple of the bunch decided to give it another go. Existing CBS shareholders own 61 percent of ViacomCBS, while Viacom shareholders own 39 percent. However, it is Viacom CEO Bob Bakish who runs the combined company, while acting CBS CEO Joe Ianniello will become chairman of CBS and run the media division.
ViacomCBS, now worth about $30 billion, will become a larger entity more equipped to compete against giants like Disney-Fox and streaming newcomers like Netflix. It is the parent company to cable channels like MTV, Nickelodeon, and Comedy Central, as well as the CBS broadcast network and Showtime. It will also have 140,000 episodes of TV, more than 3,600 movies, and is expected to bring in more than $23 billion in revenue.
Canopy + Acreage
Canada's leading marijuana producer Canopy is set to acquire American cannabis company Acreage in a deal worth $3.4 billion. It could create the world's largest cannabis company, contingent on a gigantic "if." The transaction will only go through when the U.S. legalizes marijuana, so it could be years — if ever — before this comes to fruition.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
