Largest Mergers and Acquisitions by Corporations: 2005

Order Code RL33329 CRS Report for Congress Received through the CRS Web Largest Mergers and Acquisitions by Corporations: 2005 January 6, 2006 John Williamson Information Resources Specialist Knowledge Services Group Congressional Research Service ˜ The Library of Congress Largest Mergers and Acquisitions by Corporations: 2005 Summary Mergers and acquisitions activity increased in 2004 over 2003, and 2005 was an even bigger year for mergers and acquisitions. This report provides a listing of the largest U.S. and international mergers (announced value of at least $2 billion) or acquisitions during 2005 through December 31, 2005. Completion dates for the mergers or acquisitions are included and merger or acquisition failures noted. These data have been drawn from publicly available sources and have not been otherwise verified by CRS. This report will not be updated. Sources for this report include Saigol, Lina, and James Politi. “Big Deals Return as Investors Sharpen Up — Bankers Expect Steady Growth,” Financial Times, December 30, 2005. p. 21; Thornhill, John. “The Best and Worst of Times: Investors Look Beyond Europe’s Political Malaise. FINANCIAL MARKETS: A Year of Referendum Setbacks, Continued Economic Weakness and Anxiety over Globalisation Was Also One in Which Bourses Across the Region Soared on the Back of Strong Corporate Profits,” Financial Times, December 28, 2005. p. 11; and Berman, Dennis K. “Fistfuls of Dollars Fuel the M&A Engine.” Wall Street Journal, January 3, 2006. p. R3. (For the top mergers of 2004, see CRS Report RS21726, Largest Mergers and Acquisitions by Corporations: 2004; for the top mergers of 2003, see CRS Report RS21415, Largest Mergers and Acquisitions by Corporations: 2003; for the top mergers of 2002, see CRS Report RS21147, Largest Mergers and Acquisitions by Corporations: 2002; for the top 25 mergers of 2001, see CRS Report RS20804, Twenty-five Largest Mergers and Acquisitions by Corporations: 2001; for the top 25 mergers of 2000, see CRS Report RS20504, Twenty-five Largest Mergers and Acquisitions by Corporations: 2000; for the top 25 mergers of 1999, see CRS Report RS20503, Twenty-five Largest Mergers and Acquisitions by Corporations: 1999; and for the top 25 mergers of 1998, see CRS Report RS20502, Twenty-five Largest Mergers and Acquisitions by Corporations: 1998, all by John Williamson.) Contents Table 1. Largest Mergers and Acquisitions: 2005 . . . . . . . . . . . . . . . . . . . . . . . . 1 Largest Mergers and Acquisitions by Corporations: 2005 Table 1. Largest Mergers and Acquisitions: 2005 (Ranked by Value; All amounts cited are in U.S. Dollars) Acquirer, sector, and new name (if applicable) Procter & Gamble Conglomerate ConocoPhillips Energy Bank of America Banking and finance Telefónica SA, Telecommunications Gas Natural SDB SA Natural gas supplier Boston Scientific Medical instruments Unicredito Italiano SpA Banking and finance Chevron Energy Kroger Co. Groceries SBC Communications Inc. Telecommunications AT&T Inc. Kohlberg, Kravis, Roberts & Co. Blackstone Group Apax Partners Worldwide LLP Permira Advisers Ltd. Providence Equity Partners, Inc. Investors Weather Investments SAE Naguib Sawiris et al. Clayton, Dubilier & Rice LLC Carlyle Group Merrill Lynch Global Private Equity Investors Target firm and sector Gillette Inc., Conglomerate Burlington Reources, Energy MBNA Inc., Banking and finance O2 Plc. Telecommunications Endesa SA Power company Guidant Corp. Medical instruments HVB Group AG Banking and finance Unocal Energy Albertson’s Inc. Grocerties AT&T Corp. Telecommunications TDC A/S Communications Wind SpA Telecommunications Hertz (division of Ford Motor Co.) Automobile rentals Date Date Value announced completed ($ billions) 1/28/05 10/1/05 $56.9a 12/12/05 Pending* 35.6a 6/30/05 1/1/06 35.0a 10/31/05 Pending* 31.5c 9/5/05 Pending* 28.3c 12/5/05 Pending* 27.0c 5/26/05 11/18/05 20.17a 3/7/05 8/10/05 19.4b Offer rejected by Albertson’s Board 12/21/05 1/27/05 11/18/05 16.5a 10/24/05 15.7a 11/30/05 Pending* 15.3c 4/11/05 8/12/05 15.0a 9/12/05 12/21/05 15.0b CRS-2 Acquirer, sector, and new name (if applicable) Time Warner Comcast Conglomerates Suez SA Utilities Koch Industries Commodities OAO Gazprom Natural gas producer MetLife Inc. Life insurance Silver Lake Partners LLC Bain Capital Blackstone Capital Carlyle Group Kohlberg, Kravis, Roberts Texas Pacific Group Thomas H. Lee Partners Investors Federated Department Stores Department store operator France Telecom SA Telecommunications INCO Metals producer FPL Group, Inc. Utilities Vinci SA Construction and highway operator Barrick Gold Corp. Mining Pernod Ricard S.A. Wine and spirits Verizon Corp. Telecommunications Unipol Sp.A. Insurance Cerberus Capitol Investors Kimco Realty Corp. Real estate Supervalu Inc. Groceries wholesaling and retailing Berkshire Hathaway Corp. Holding company Duke Energy Corp. Energy Valor Communications Group Inc. Telecommunications Target firm and sector Adelphia Cable operator Electrabel SA Electricity Georgia-Pacific Inc. Wood products OAO Sibneft Petroleum Travelers Life & Annuity Co. Life insurance SunGard Data Systems Software and data processing May Department Stores Department store operator Grupo Auna SA mobile phone unit Telecommunications Falconbridge Metals producer Constellation Energy Group, Inc. Utilities Autoroutes du Sud Highway operator Placer Dome Inc. Mining Allied Domecq Plc Conglomerate MCI Corp. Telecommunications Banca Nazionale del Lavoro Sp.A. Banking and finance Albertson’s Groceries PacifiCorp Energy Cinergy Corp. Energy Alltel Corp. landlines Telecommunications Date Date Value announced completed ($ billions) 1/31/05 Pending* 14.0a 8/9/05 11/15/05 14.0c 11/14/05 12/23/05 13.2b 9/27/05 10/21/05 13.01a 1/31/05 7/1/05 11.5a 3/21/05 8/11/05 11.3b 1/20/05 8/30/05 11.0a 7/21/05 11/8/05 11.0a 10/11/05 Pending* 11.0b 12/14/05 Pending* 11.0a 12/14/05 Pending* 10.9b 10/31/05 Pending* 10.4a 2/4/05 7/26/05 10.0a 1/14/05 1/6/06 9.74c 12/29/05 Pending* 9.74b 12/15/05 Bid rejected by Albertson’s Board 12/21/05 9.6a 5/24/05 Pending* 9.4c 8/2006 (Projected) 12/9/05 Pending* 9.1c 5/9/05 9.1a CRS-3 Acquirer, sector, and new name (if applicable) Ineos Group Holdings Plc Petrochemicals Valero Energy Inc. Energy Kohlberg, Kravis, Roberts Bain Capital Vornado Realty Investors NRG Energy Inc. Energy Eiffage SA Highway operator Macquarie Bank Banking and finance ABN Amro Holding NV Banking and finance UnitedHealth Inc. Health insurer Novartis AG Pharmaceuticals Texas Pacific Bain Capital Blackstone Group Investors SABMiller Plc Beverages Sankyo Corp. Pharmaceuticals Daiichi Sankyo Co. Lincoln National Corp. Insurance Teva Pharmaceutical Industries Ltd. Pharmaceuticals Metrovacesa S.A. Real estate developer BHP Billiton Mining Allianz A.G. Insurance Deutsche Post AG Mail, package handling, delivery Cisco Systems Inc. Routers Swiss Reinsurance Co. Insurance Cie. de Saint-Gobain SA Conglomerate WellPoint Inc. Health insurer Target firm and sector Innovene, Inc. Petrochemicals Premcor, Inc. Energy Toys ‘R Us Retailer Texas Genco LLC Energy Société des Autoroutes Paris-Rhin-Rhône Highway operator Banca Antonveneta SpA Banking and finance PacifiCare Health Systems, Inc. Health insurer Hexal AG Pharmaceuticals Affiliated Computer Services, Inc. Data processing Grupo Empresarial Bavaria SA Beverages Daiichi Pharmaceutical Co. Pharmaceuticals Jefferson-Pilot Corp. Insurance Ivax Corp. Pharmaceuticals Gecina S.A. Real estate company WMC Resources Mining Riunione Adriatica di Sicurta SpA Insurance Exel Plc Package handling, delivery Scientific-Atlanta Inc. TV set-top boxes General Electric Co. reinsurance division Conglomerate BPB Plc Building materials WellChoice Inc. Health insurer Date Date Value announced completed ($ billions) 10/7/05 12/17/05 9.0a 4/24/05 9/1/05 8.7a 3/17/05 7/21/05 8.6c 10/2/05 Pending* 8.3a 12/14/05 Pending* 8.25b 3/30/05 Pending* 8.16c 7/6/05 12/26/05 8.14c 2/21/05 5/28/05 8.37a 12/23/05 Pending* 8.0a 7/18/05 12/4/05 7.8a 2/25/05 9/1/05 7.7c 10/10/05 Pending* 7.5a 7/25/05 1/12/05 7.4c 3/15/05 6/6/05 7.39b 3/8/05 6/3/05 7.3b 9/11/05 11/14/05 7.1c 9/16/05 12/13/05 6.9c 11/17/05 Pending” 6.9a 11/18/05 Pending* 6.8c 7/21/05 12/2/05 6.62a 9/27/05 12/28/05 6.6c CRS-4 Acquirer, sector, and new name (if applicable) Sprint Nextel Corp. Telecommunications Washington Mutual Banking and finance Hilton Hotels Corp. Lodging NTL Inc. Cable operator News Corp. Ltd. Conglomerate Oracle Corp. Inc Software Cinven Group Ltd. BC Partners Ltd. Investors Old Mutual Plc Insurance Boots Group Plc Drugstore chain Alliance Boots Plc Punch Taverns Plc Tavern operator Dubai Ports World Port operator Commerzbank AG Banking and finance Barclays Plc Banking and finance Altria Group Conglomerate Novartis AG Pharmaceuticals Deutsche Annington GmbH Real estate Capital One Financial Banking and finance Arcelor SA Steel Abertis Infraestructuras SA Highway operator Mittal Steel N.V. Steel Yuji Tsutsumi Seiji Tsutsumi Investors Vodafone Plc. Telecommunications Erste Bank AG Banking and finance Target firm and sector Nextel Partners Telecommunications Providian Banking and finance Hilton International Plc Lodging Telewest Global Inc. Cable operator Fox Entertainment Group, Inc. Entertainment Siebel Systems Inc. Customer service software Amadeus Global Travel Distribution SA Travel Skandia AB Insurance Alliance Unichem Plc Drugstore chain Date Date Value announced completed ($ billions) 12/20/05 Pending* 6.5c 6/6/05 10/1/05 6.45a 10/13/05 Pending* 6.3a 10/3/05 Pending* 6.0a 1/10/05 3/21/05 5.9a 9/12/05 Pending* 5.85c 1/12/05 7/4/05 5.8a 12/20/05 Pending* 5.7c 10/3/05 Pending* 5.6a Spirit Group Ltd. Tavern operator Peninsular & Oriental Steam Navigation Co., Plc Port operator Eurohypo AG Mortgage banking Absa Group Ltd. Banking and finance PT HM Sampoerna Cigarette maker Chiron Corp. Inc. Pharmaceuticals Viterra AG Real estate Hibernia Bank Banking and finance Dofasco Inc. Steel Sanef SA Highway operator Kryvorizhstal Steel Seibu Railway KK Transportation and real estate 1/5/06 (Projected) 10/30/05 Pending* 5.47b Telsim Mobil Telekomunikasyon Hizmetleri AS Telecommunications Banca Comerciala Romana SA Banking and finance 6/25/05 5.32a 11/15/05 Pending* 5.3b 4/25/05 7/27/05 5.2c 3/14/05 5/30/05 5.1c 10/31/05 Pending* 5.1c 5/17/05 5/17/05 5.0c 3/6/05 11/14/05 5.0b 12/22/05 Pending* 4.85a 12/14/05 Pending* 10/24/05 11/29/05 4.8a 10/31/05 Pending* 4.8b 12/13/05 Pending* 4.55a 12/20/05 Pending* 4.45c 4.83b CRS-5 Acquirer, sector, and new name (if applicable) Alltel Telecommunications Occidental Petroleum Energy R.H. Donnelley Corp. Publisher China National Petroleum Co. Energy ThyssenKrupp AG Steel Fresenius Medical Care AG Kidney dialysis Fresenius Medical Care KGaA CVS Corp. Drug stores BAE Systems Plc. Defense/aerospace Wachovia Corp. Inc. Banking and finance adidas-Salomon AG Apparel Providence Equity Partners Inc. Investors Gala Group Holdings Plc. Gambling Marathon Oil Corp. Energy Legg, Mason & Co. Banking and finance Whirlpool Inc. Appliances Porsche AG Automobiles Liberty Media Conglomerate Liberty Global Reckitt Benckiser Ple. Home products Adobe Systems Inc. Software CalEast Industrial Investors LLC California Public Employees Retirement System Jones Lang LaSalle Inc. RAG AG Chemicals Blackstone Group LP Investors Intelsat Ltd. Satellite telecommunications Target firm and sector Western Wireless Telecommunications Vintage Petroleum Inc. Energy Dex Media Inc. Publisher PetroKazakhstan Energy Dofasco, Inc. Steel Renal Care Group Inc. Kidney dialysis Date Date Value announced completed ($ billions) 1/6/05 8/1/05 4.3a 10/13/05 Pending* 4.3a 10/3/05 Pending* 4.2b 8/22/05 10/27/05 4.18b 11/28/05 Outbid 4.1c 5/4/05 Pending* 4.0a Savon Drugs Drug stores United Defense Technologies Inc. Defense contractor Westcorp Banking and finance Reebok International Ltd. Apparel Kabel Deutscheland GmbH 12/15/05 Pending* 4.0a 3/7/05 6/24/05 3.97c 9/12/05 Pending* 3.91c 8/2/05 Pending* 3.8c 12/8/05 Pending* 3.8c Coral Eurobet Plc. Gambling Marathon Ashland Petroleum LLC Petroleum refiner Citigroup’s fund unit Banking and finance Maytag Inc. Appliances Volkswagen AG (19%) Automobiles UnitedGlobalCom Inc. Telecommunications 10/7/05 11/24/05 3.8c 4/28/05 6/30/05 3.7a 6/24/05 12/1/05 3.7c 7/16/05 Pending* 3.6b 9/24/05 10/31/05 3.6c 1/18/05 6/15/05 3.5b Boots Group’s health-care unit Pharmaceuticals Macromedia Inc. Software CenterPoint Properties Trust Real estate investment trust 10/7/05 Pending* 3.43c 4/17/05 12/5/05 3.4a 12/9/05 Pending* 3.4a Degussa AG Chemicals Wyndham International Inc. Hotels PanAmSat Satellite teleocmmunications 12/19/05 Pending* 3.36c 6/14/05 8/16/05 3.24c 8/29/05 Pending* 3.2c CRS-6 Acquirer, sector, and new name (if applicable) Allergan Inc. Medical products Allergan Inc. Cosmetic pharmaceuticals Repsol YPF S.A. Energy CVC Capital Partners Ltd. Investor General Electric Co. Conglomerate Axel Springer AG Communications J.C. Flowers & Co. LLC ABN Amro Holding NV American International Group Inc. Banco Santander Central Hispano SA Delta Lloyd Shinsel Bank Ltd. Bank of America Corp. Govt. of Singapore Investment Corp. Goldman Sachs Group J.P. Morgan Chase & Co. Investors American Tower Corp. Wireless towers CVC Capital Partners Investors Amgen Inc. Pharmaceuticals Citigroup Inc. Banking and finance Macquarie Bank Banking and finance Extra Space Storage Inc. Prudential Financial Inc. Investors A.P. Moeller-Maersk A/S Shipping Starwood Capital LLC Investment fund eBay Inc. Internet auctioneer Woolworths Ltd. Metcash Trading Groceries Kohlberg, Kravis, Roberts & Co. Permira Advisers Ltd. Investors Target firm and sector Medicis Inc. Medical productrs Inamed Corp. Pharmaceuticals Royal Dutch/Shell Group’s LPG assets Liquified petroleum gas Arden Realty Inc. Real estate investment trust ProSiebenSat.1 Media AG Broadcasting NIB Capital Bank NV Banking and finance SpectraSite Inc. Wireless towers Formula One (75%) Auto racing promoter Abgenix Inc. Pharmaceuticals Guangdong Development Bank Banking and finance London Stock Exchange Plc. Stock exchange Storage USA (unit of General Electric) Self-storage Royal P&O Nedlloyd NV Shipping Taittinger SA Conglomerate Skype SA VOIP seller Foodland Associated Ltd. Groceries SBS Broadcasting SA Telecommunications Date Date Value announced completed ($ billions) 11/21/05 Pending* 3.2b 12/20/05 Pending* 3.2a 6/2/05 Pending* 3.1a 12/20/05 Pending* 3.1a 8/5/05 Pending* 3.05c 7/07/05 8/9/05 3.05a 5/4/05 8/8/05 3.0a 11/25/05 Pending* 3.0a 12/14/05 Pending* 3.0a 12/30/05 Pending* 3.0c 12/8/05 Pending* 2.7b 4/25/05 7/14/05 2.6a 5/10/05 9/14/05 2.6c 7/22/05 7/22/05 2.6c 9/12/05 Pending* 2.6b 5/25/05 11/10/05 2.57c 8/22/05 Pending* 2.55b CRS-7 Acquirer, sector, and new name (if applicable) Bain Capital Group LLC Investors Foster’s Group Ltd. Beverages Norsk Hydro ASA Conglomerate Bain Capital Carlyle Group Thomas H. Lee Partners Investors General Electric Co. Conglomerate Macquarie Bank Ltd. Macquarie Capital Alliance Group Nikko Cordial Corp. Caisse de Depot et Placement du Quebec Investors Goldman, Sachs & Co. Investors Medco Health Solutions Pharmaceuticals distributor Liberty Global Inc. Cable-television systems BAA Plc. Airport operator General Dynamics Defense conglomerate Postbank AG Banking and finance Talisman Energy, Inc. Oil Cimarex Energy Co. Natural gas Aviva plc Insurance Ericsson AB Telecommunication equipment IAC/InterActiveCorp. Internet conglomerate Statoil ASA Norwegian government OAO Lukoil Petroleum Date Date Value Target firm and sector announced completed ($ billions) Texas Instruments’ sensors and control div. 12/22/05 Pending* 2.5a Southcorp Ltd. Winemaker Spinnaker Exploration Co. Oil and gas Dunkin’ Brands Restaurants Bombardier Inc. finance unit Conglomerate YBR Group NV Telephone directory publisher HVB AG delinquent loans Banking and finance Accredo Health Specialty pharmaceuticals Cablecom AG Cable-television systems Budapest Airport Rt. Airport operator Anteon Inc. Information technology BHW AG Banking and fianance Paladin Resources Plc Oil Magnum Hunter Resources Co. Natural gas RAC plc Automobile servicing Marconi Corp. Telecommunications equipment Ask Jeeves Inc. Internet search engine Encana Corp. Gulf of Mexico oil and gas properties Nelson Resources Ltd. Oil 4/22/05 5/27/05 2.46a 9/18/05 12/13/05 2.45a 12/12/05 Pending* 2.43b 4/17/05 6/1/05 2.4c 5/16/05 6/1/05 2.3c 11/11/05 Completed 2.3b 2/23/05 8/18/05 2.2b 9/30/05 10/25/05 2.2c 12/8/05 Pending* 2.2c 12/14/05 Pending* 2.2a 10/25/05 Pending* 2.16b 10/20/05 Pending* 2.15c 1/26/05 6/7/05 2.1a 3/9/05 5/27/05 2.1a 1/06 (projected) 3/21/05 8/9/05 2.1c 2.0a 4/28/05 7/1/05 2.0a 9/30/05 12/5/05 2.0c 10/25/05 Sources: Mergerstat Online [http://www.mergerstat.com]; Mergers & Acquisitions Magazine, various issues; The Wall Street Journal, various dates; The Financial Times, various dates; announcement and closing dates from The Wall Street Journal or The Financial Times, various dates. Note: Values given for transactions are expressed as the value of the combined assets of the two firms when there is a merger. In an acquisition, the value shown is the purchase price of the target corporation. These figures some times vary CRS-8 from one source to another and can change as the market value of the company’s stock changes; values are shown in U.S. Dollars. U.S. Dollar value can fluctuate with changes in exchange rates. The values shown above are derived from the following sources: a. Source for value: The Wall Street Journal. b. Source for value: The Financial Times. c. Source for value: bloomberg.com. * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained.