Introduction to Corporate Finance

ONLINE CHAPTERS

Rank (by

Deal Size)

Year Deal Size

(USD million)

Target Name Target

Nation

Target Industry Acquirer

Name

Acquirer

Nation

Acquirer Industry

5 2000 88,771 Warner-Lambert Co United States Pharmaceuticals Pfizer Inc United States Pharmaceuticals

6 1999 85,126 Mobil Corp United States Oil & Gas Exxon Corp United States Oil & Gas

7 2000 78,775 SmithKline Beecham

PLC

United

Kingdom

Pharmaceuticals Glaxo Wellcome

PLC

United Kingdom Pharmaceuticals

8 2008 75,242 Suez SA France Power Gaz de France

SA

France Oil & Gas

9 1998 72,558 Citicorp United States Banks Travelers Group

Inc

United States Insurance

10 2000 71,324 GTE Corp United States Telecommunications

Services

Bell Atlantic

Corp

United States Telecommunications

Services

11 1999 70,395 Ameritech Corp United States Telecommunications

Services

SBC

Communications

Inc

United States Telecommunications

Services

12 1999 69,896 Tele-Communications

Inc

United States Cable AT&T Corp United States Telecommunications

Services

13 2015 67,186 DirecTV Inc United States Cable AT&T Inc United States Wireless

14 2015 66,404 Allergan Inc United States Pharmaceuticals Actavis PLC United States Pharmaceuticals

15 1999 65,763 AirTouch

Communications Inc

United States Telecommunications

Services

Vodafone Group

PLC

United Kingdom Wireless

16 2004 65,657 Aventis SA France Pharmaceuticals Sanofi-

Synthelabo SA

France Pharmaceuticals

17 2009 64,480 Wyeth United States Pharmaceuticals Pfizer Inc United States Pharmaceuticals

18 1998 61,633 BankAmerica Corp,

San Francisco,CA

United States Banks NationsBank

Corp, Charlotte,

North Carolina

United States Banks

19 2003 60,704 Pharmacia Corp United States Pharmaceuticals Pfizer Inc United States Pharmaceuticals

20 2008 60,408 Anheuser-Busch

Cos Inc

United States Food and Beverage InBev NV Belgium Food and Beverage

Source: Data to create table sourced from SDC Platinum, Thomson Reuters,19 December 2015.

In the Australian M&A market, cross-border activity has played an important part in recent years.

According to a 2012 report by Clayton Utz^3 , in 2011 foreign bidders far outstripped domestic bidders

in terms of M&A activity, and accounted for over 77% of the deals by value, and over 64% of the deals

by volume. Foreign bidders were also involved in the six largest deals. Figure 21.7 shows that in 2014,

Canadian companies accounted for the largest acquisition of Australian target assets (by deal value). The

US produced the highest number of deals, accounting for 26.3% of the deals by number. Acquirors from

the Asia Pacific region accounted for over 70% of deals (by value), although the number of deals were

relatively small; suggesting the constituent deals themselves involved very large investments, by value.

According to a 2014 report by Clayton Utz^4 , this is now trending downwards. By 2013, foreign bids

declined significantly, with foreign bidders involved in 48% of deals (by number) and 63% of deals (by

value). Seventy-four per cent of offshore capital was sourced from North America, and foreign bidders

were domiciled in China, Canada, the US, the UK, India, Bermuda, the Cayman Islands and South

Africa. However, only bidders from China and Canada accounted for multiple deals.

3 Source: The Real Deal, M&A Deal Trends and Developments, 2012 Edition, Clayton Utz.

4 Source: The Real Deal, M&A Deal Trends and Developments, 2014 Edition, Clayton Utz, p. 17.

TABLE 21.1 TWENTY LARGEST CORPORATE TAKEOVERS, RANKED BY TRANSACTION VALUE (Continued)