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Biggest Mergers and Acquisitions of 2018

Mergers and acquisitions happen all the time in businesses. Sometimes they go smoothly, but, other times, the process can be complicated. This year, 2018, there have been some huge mergers and acquisitions of companies that have shaken the finance world. These are some of the biggest you may not have heard about.

Shire and Baxalta

This June, after a six-month long deal, Shire announced that it was purchasing Baxalta in a $32-billion-dollar merger in both cash and stocks. This merger was completed to allow Shire a stronger stance on treating rare disease and specialized disorders. This decision gives Shire the chance to dedicate 65% of its total annual revenue toward rare disease products in gastrointestinal and endocrine diseases, hereditary angioedema (HAE), neuroscience, and lysosomal storage diseases.

Abbott Labs and St. Jude Medical

April marked the acquisition of St. Jude Medical by Abbott Labs for $30.6 billion. Abbott Labs paid $25 billion in cash and stocks while assuming about $5.7 billion in debt. Abbott acquired St. Jude to create “a premier medical device leader with top positions in high-growth cardiovascular markets, including atrial fibrillation, structural heart and heart failure, as well as a leading position in the high-growth neuromodulation market.”

LinkedIn and Microsoft

In June, Microsoft acquired the business-oriented social media site LinkedIn for $26.2 billion. With this acquisition, LinkedIn retains its independence, brand, and distinct culture. Jeff Weiner is going to remain CEO of LinkedIn despite the purchase, and the transaction is expected to close at the end of this year. Both parties agreed the acquisition is a way to increase growth and allow for more development for the clients that use the service. LinkedIn is expected to run through Microsoft’s Productivity and Business Processes segment.

Tyco International and Johnson Controls

Tyco International released this July that it was going to be merging with Johnson Controls for $16.6 billion. The decision is expected combine Tyco’s fire and security systems with Johnson Controls’ heating, ventilation, and air conditioning (or HVAC) causing the merger to create a leading player in the commercial building products marketplace. The merger will also allow Tyco International the chance to participate in the Power Solutions and Automotive Experience business.

Starwood and Marriott International

Approved by stockholders, Marriott International is going to acquire Starwood, creating the world’s largest hotel company. This has been one of the more tense acquisitions of the year after Anbang Insurance, Starwood’s top bidder, called it quits, which allowed Marriott International the ability to takeover. The agreement occurred in March, but the actual acquisition still hasn’t taken place as of August. Marriott International promises that the deal is still going to happen, but that it’s taking longer than either party anticipated. Some have claimed Marriott International isn’t as pleased with the merger due to Starwood’s slow pace of selling its real estate assets.

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