Top 10 Mergers and Acquisitions Articles of 2017

These are the 10 most-popular articles covering mergers and acquisitions that Euromonitor International published in 2017.

 

1. If Reckitt Benckiser Buys Mead Johnson then is a Home Care Spinoff Next?

Reckitt Benckiser Group (RB) is currently in “advanced” talks to buy Mead Johnson Nutrition Co for USD16.7 billion, in a deal that makes little market overlap sense on the surface but could hint at future strategic plans. Reckitt Benckiser’s existing brands currently centre on home care, consumer health and beauty and personal care, and have little to do with baby milk formula, dairy or even packaged food to a larger extent.

 

2. Luxottica and Essilor Merger to Create by Far the Largest Entity in Eyewear

Italian spectacle frame maker, Luxottica Group SpA, and French spectacle lens manufacturer, Essilor International SA, have agreed to merge and the new group will be known as Essilor-Luxottica. While the two companies lead their respective categories, the deal will create by far the largest entity in the global eyewear market. Here are some of the competitive advantages that stand to benefit the two companies through this agreement.

 

3. The Implications Amazon’s Acquisition of Whole Foods

Amazon announced today that it will buy grocery retailer Whole Foods in a US$13.7 billion deal. What will this acquisition mean for Whole Foods, Amazon and the grocery industry?

 

4. Amazon Expanding Co-Branded Credit Card Offerings

Internet retailing giant Amazon.com made news in January 2017 with the launch of two new co-branded credit cards. While Amazon is already a major player in both markets – with a 27% share of 2016 internet retailing value sales in the UK and a 33% share in the US – this move is an excellent step for a company which continues to push into new services and opportunities that further expand its relationship with customers.

 

5. Consequence of BAT’s Full Acquisition of Reynolds Can Scarcely Be Overstated

Despite recent whispers of an impasse in negotiations (revolving around the valuation of Reynolds’ next generation product portfolio), in a joint statement this morning Reynolds American and British American Tobacco confirmed that they had agreed the terms of a merger in which the UK-based company will acquire the remaining 57.8% of RAI it did not already own for some USD49.4bn. Reynolds shareholders will retain almost a fifth of the new entity, the world’s largest public tobacco company (by valuation, if not by volume).

 

6. Amazon Likely to Disrupt Physical Retail Space with Acquisition of Whole Foods

Video: Does Amazon’s acquisition of Whole Foods mark a turning point in the retailer’s strategy? If Amazon decides to follow in Alibaba’s footsteps, the answer is yes. The Whole Foods acquisition is most likely the first in a series by Amazon, which may include fashion retailers and large appliance retailers. Regardless, the acquisition marks a turning point for Amazon and the grocery channel in the United States.

 

7. PayPal and Zelle – Developments in US Peer-to-Peer Payments

Peer-to-peer payments in the US had an eventful month in June. PayPal, one of the leaders in digital payments, announced that it would begin offering instantaneous bank transfers via Visa and Mastercard debit cards. In addition, Early Warning Services unveiled its new Zelle peer-to-peer payments service, which will be supported by over 30 banks over the course of the next year. Together, these two announcements illustrate the growing importance of peer-to-peer payments to financial service providers.

 

8. Peugeot-Opel Merger: Implications for Western European Car Market and Industry Production

Peugeot SA has agreed to take over the Opel/Vauxhall brand from General Motors (GM), with the deal valued at EUR2.2 billion. Both companies are in the final stages of negotiations, with GM hinting that the takeover could be wrapped up by 31 July. Euromonitor International discusses key implications that the deal will have on both the Western European new car market and automotive industry.

 

9. Sears Holdings Clings to Life by Selling Craftsman

Every quarter seems to bring new tidings of woe from US-based Sears Holdings Corp, the company that owns Sears department stores and the Kmart chain of mass merchandisers. On 5 January 2016, in a move that reflected the company’s increasingly uncertain future, SearsHoldings announced that it had agreed to sell its well-respected brand of Craftsman tools and equipment to US-based tools giant Stanley Black & Decker Inc, while also revealing the closure of an additional 150 Sears and Kmart stores.

 

10. Google Buys HTC: Buying a Friend for US$1.1 billion

HTC, a pioneer in the development of the Android hardware, halted the trading of its shares and announced that Google has bought a part of HTC’s workforce that’s currently working on the Pixel phone.