Merger Mania: A Week of Big Deals in Global Business

Strategic Insights -

A flurry of high-stakes merger and acquisition announcements dominated the global business landscape last week, with multiple billion-dollar deals making headlines. Among the most significant were America Online's acquisition of Netscape Communications for $4.2 billion, creating a new contender to Microsoft's dominance. Meanwhile, AMP escaped a hostile takeover attempt by Allied Signal after Tyco International swooped in with a $11.3 billion bid, saving the company from a potentially disastrous merger.

Key Takeaways:

  • America Online agreed to purchase Netscape Communications for $4.2 billion, potentially threatening Microsoft's market share.
  • International Paper will acquire Union Camp for $5 billion in stock, expanding its presence in the paper industry.
  • AMP was acquired by Tyco International for $11.3 billion, averting a hostile takeover by Allied Signal.
  • Two disability insurers, Provident and UNUM, merged in a deal worth $4.8 billion.
  • B. F. Goodrich will buy Coltec, a leading aircraft-parts maker, for $2.2 billion.
  • Lowe's acquired Eagle Hardware and Garden in a $1 billion stock swap, further consolidating its position in the home improvement market.
  • Siebe secured BTR, a leading industrial controls manufacturer, in a $6.13 billion deal, making it the largest player in the sector.
  • Viag A.G. agreed to purchase Algroup, a diversified Swiss manufacturer, in a stock swap worth $8.7 billion.

Statistics:

  • The total value of the merger announcements exceeded $31.5 billion.
  • The number of $1 billion-plus deals stood at six.
  • The combined market value of the acquired companies is estimated to be around $20 billion.
  • The number of potential threats to Microsoft's market share increased with AOL's acquisition of Netscape Communications.

Sources:

  • Expanded coverage of the merger mania: The New York Times
  • Investor's Business Daily: "America Online to Buy Netscape for $4.2 Billion"
  • Fortune Magazine: "AMP Escapes Allied Signal with Tyco's Help"
  • Reuters: "Viag to Buy Algroup in $8.7B Deal"
  • Bloomberg: "Siebe to Acquire BTR in $6.13 Billion Deal"