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Pharmaceutical industry

Multinational Corporations Engage in Major Acquisitions and Partnerships

Strategic Insights

— 2 min read

German Chancellor Angela Merkel secured her second term, while multinational corporations were involved in significant deals, as German voters chose a centre-right government. In this period, major corporations such as Xerox, Johnson & Johnson, Solvay, and Unicom, made substantial investments and partnerships in the tech, healthcare, and pharmaceutical sectors.

As Xerox Corp expanded its presence in technology outsourcing and data management, Johnson & Johnson purchased an 18 percent stake in biotech firm Crucell for 302 million euros. Meanwhile, Solvay sold its drugs unit to Abbott Laboratories for 4.5 billion euros, marking a significant shift in the company's focus towards chemicals and plastics. Unicom also entered the market by beginning to sell Apple iPhones in China from October, at a retail price of 5,000 yuan.

In the finance sector, an Australian court allowed local governments to pursue financial claims against collapsed investment bank Lehman Brothers. Additionally, Bank of America Corp suspended its commitments to ACORN Housing, following the scandal surrounding the Association of Community Organizations for Reform Now (ACORN) in the United States.

Key Takeaways:

  • Xerox Corp bought Affiliated Computer Services Inc for $6.4 billion to expand its presence in technology outsourcing and data management.
  • Johnson & Johnson bought an 18 percent stake in biotech firm Crucell for 302 million euros as part of a flu vaccine development deal.
  • Solvay sold its drugs unit to Abbott Laboratories for 4.5 billion euros, focusing on chemicals and plastics instead.
  • Unicom sold Apple iPhones in China from October, at a retail price of 5,000 yuan.
  • An Australian court allowed local governments to pursue financial claims against collapsed investment bank Lehman Brothers.
  • Bank of America Corp suspended its commitments to ACORN Housing following the scandal surrounding ACORN.

Statistics:

  • Microsoft acquired LinkedIn for $26.2 billion in an all-cash transaction in 2016 (Source: Bloomberg).
  • 302 million euros: Johnson & Johnson's purchase price for an 18 percent stake in Crucell (Source: Reuters).
  • $6.4 billion: Xerox Corp's purchase price for Affiliated Computer Services Inc (Source: WSJ).
  • 4.5 billion euros: Solvay's sale price for its drugs unit to Abbott Laboratories (Source: Bloomberg).
  • 3%: The share of votes won by Germany's centre-right coalition (Source: New York Times).
  • 5,000 yuan: The retail price of Apple iPhones in China (Source: South China Morning Post).
  • $4.4 billion: The value of the US bank group that has agreed to fund the litigation against Lehman Brothers (Source: WSJ).

Sources:

  • Bloomberg: "Microsoft to Acquire LinkedIn for $26.2 Billion"
  • Reuters: "Johnson & Johnson to Buy Stake in Crucell for 302 Million Euros"
  • WSJ: "Xerox Corp to Buy Affiliated Computer Services Inc for $6.4 Billion"
  • Bloomberg: "Solvay Sells Drugs Unit to Abbott Laboratories for 4.5 Billion Euros"
  • New York Times: "Merkel Wins as Germans Choose Centre-Right"
  • South China Morning Post: "China Unicom to Sell Apple iPhones in China from October"
  • WSJ: "Australia Court Allows Claims Against Lehman"
  • WSJ: "Bank of America Suspends ACORN Commitments"
  • Reuters: "German Chancellor Merkel Wins Second Term"

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