In the history of global business, every year closes with some kind of deal, be it in millions or billions of dollars. 2017 is not an exception as the year ended with several Mergers & Acquisitions, which are expected to shake the global business industry. While we are already in 2018, it is important to start the year by taking a look at some of the best mergers and acquisitions in 2017. These acquisitions happened in almost all the industries which include the retail sector, tech industry, fashion industry as well as the film and TV industry. These are not mere deals because they are also historic acquisitions that will disrupt their various industries and should be looked out for in 2018.
Although there were a lot of Mergers & Acquisitions that happened in 2017 below are the best five mergers and acquisitions from major brands in the various industries.
- Amazon acquires Whole Foods for $13.7 billion
In August 2017, e-commerce giant Amazon acquired high-end organic grocery chain, Whole Foods for $13.7 billion. According to reports, the day the acquisition went through, prices of many Whole Foods staples immediately dropped. Some price tags decreased by up to 40 percent. Immediately after the acquisition, Amazon began changes from cutting costs to internal restructuring. This acquisition gives Amazon hundreds of physical stores and offers the company a strong entry into the competitive grocery and food industry.
- Intel Acquires Mobileye $15.3 billion
In early August 2017, Intel announced that it had completed a tender offer for outstanding ordinary shares of Mobileye, a global leader in the development of computer vision and machine learning, The Israel-based company, The deal worth $15.3 billion is the biggest-ever acquisition of an Israeli tech company. Mobileye is also known for developing sensors and cameras for Advanced Driver Assisted Systems (ADAS).
The combination of Intel and Mobileye will allow Mobileye’s leading computer vision expertise (the “eyes”) to complement Intel’s high-performance computing and connectivity expertise (the “brains”) to create automated driving solutions from cloud to car. Intel estimates the vehicle systems, data and services market opportunity to be up to $70 billion by 2030.
- Disney to Buy some of 21stCentury Fox’s Assets
A few weeks ago, Disney announced 21st Century Fox announced a historic $52.4 billion in stock deal to acquire many parts of Twenty-First Century Fox. This deal will see Disney own Fox’s movie studios, networks Nat Geo and FX, Asian pay-TV operator Star TV, and stakes in Sky, Endemol Shine Group and Hulu, as well as regional sports networks. The deal has a total value of approximately $66.1 billion, with Disney assuming $13.7 billion of Fox’s net debt.
According to reports, the acquisition bolsters Disney’s plans to become a dominant streaming service platform, making it a bigger threat to Netflix.
- Michael Kors Acquires Jimmy Choo
“Affordable” luxury retailer Michael Kors in November 2017 announced that it has completed that acquisition of footwear brand Jimmy Choo in a transaction worth approximately $1.35 billion. The acquisition of Jimmy Choo is expected to deliver a number of benefits which includes growing Jimmy Choo sales to $1 billion.
The deal was funded through a combination of borrowings under the company’s new term loan facility and the issuance of senior unsecured notes, with a weighted average interest rate of 3.1 percent, as well as cash on hand. The acquisition was effected by way of a UK scheme of arrangement.
- Google acquired part of HTC Smartphone team for $1.1 billion
Google has confirmed that it plans to acquire a select team of engineers from HTC’s smartphone division for $1.1 billion in an all-cash deal in order to grow its smartphone hardware business. Under the terms of the unusual arrangement, Google won’t get a direct stake in HTC but instead, it’ll gain “non-exclusive” licensing rights to HTC’s current and future intellectual property. The engineers are people who have already worked with Google to develop its Pixel smartphones, and they will soon become “fellow Googlers.”