In accordance with the report carried out by PwC, since the beginning of the year a lot has changed in the world of M&A: the use of AI is on the rise, inflation is decelerating, interest rates are peaking and some banks have failed.
According to Forbes, we see the majority of transactions in sectors such as: digital transformation, pharmaceuticals and sustainability.
With a drop in megadeals, executives are relying on mid-market M&A to increase growth and strategic transformation. We also see new M&A trends emerging, such as business restructuring, acqui-hire deals and international M&A.
Nevertheless, 2023 has continued to be a successful year for global M&A activity, let´s look at the biggest M&A deals that are predicted to, or are already, close this year:
The biggest M&A deals of 2023:
5. Bunge acquisition of Viterra
Closing date: Announced june 2023
Deal value: $18 billion
American agribusiness and food company, Bunge Ltd, plans to acquire Viterra, agricultural business headquartered in Rotterdam, in a deal valued at $18 billion.
Viterra shareholders will receive about 65.6 million shares of Bunge stock, an approximate value of $6.2 billion and $2 billion in cash. Meanwhile, Bunge will assume $9.8 billion of Viterra debt.
Why not have a look at the biggest M&A deals in 2022 here?
4. Newmont acquisition of Newcrest Mining
Closing date: expected to close in 4th quarter of 2023.
Deal value: $19 billion
American gold mining company, Newmont has secured a $19 billion deal to acquire its Australian rival, Newcrest Mining Ltd. This deal will subsequently allow Newmont to secure its position as the largest global bullion producer, with mines located in America, Africa, Australia and Papua New Guinea.
The acquisition is set to generate pre-tax synergies of $0.5 billion and at least $2 billion in cash improvements within two years of closing.
3. Amgen acquisition of Horizon Therapeutics
Closing date: 4th quarter of 2023
Deal value: $27.8 billion
As of Friday 1st September 2023, the Federal Trade Commission has reached a deal with Amgen, a biopharmaceutical company, that will allow the $27.8 billion deal to progress.
The acquisition was first introduced in December 2022, and the two companies expect to close the deal in the fourth quarter of 2023.
2. Pfizer acquisition of Seagen
Closing date: expected to close in late 2023/early 2024
Deal value: $43 billion
Pfizer, an American multinational pharamceutical and biotechology company, is set to acquire Seagen, an American biotechnology company, for $229 per share, a total value of $43 billion.
Seagen´s medicine and expertise in Antibody-Drug Conjugates (ADCs) are strongly useful in Pfizer´s oncology portfolio. Seagen is therefore, meant to contribute more than $10 billion to Pfizer in risk-adjusted revenues in 2030.
1. Broadcom aquisition of VMware
Closing date: 30th October 2023
Deal value: $69 billion
Broadcom, one of the globally leading semi conductor company, announced its $69 billion acquisition of VMware, an American technology company.
When initially announced in May 2022, the deal had a value of $61 billion but this has increased to $69 billion in 2023. The UK´s Competition and Market Authority has finally approved the $69b transaction.
The merger will enable Broadcom to quicken its adoption of cloud technologies. Furthermore, it will also grant VMware the financial resources to fund research and development projects.
Did you find that interesting? Read our article on 2021´s biggest M&A deals here.
2023: a great year for M&A deal
In summary, a more capital-constrained environment, the technology revolution and geopolitical or regulatory dynamics are three main factors that will influence business decision-making. Additionally, the commotion of previous months is creating dynamic market conditions that will open transformation opportunities and an environment for a stronger M&A market. In this stronger market, we will see mid-market M&A dominate. For buyers, access to capital will be key, alongside intricate financial and non-financial due diligence. While for buyers, preparation will be crucial to success.
At ONEtoONE Corporate Finance, we excitedly anticipate the future developments in the M&A industry.
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