Largest Mergers and Acquisitions by Corporations: 2002

Order Code RS21147 Updated January 3, 2003 Largest Mergers and Acquisitions by Corporations: 2002 John Williamson Technical Information Specialist Resources, Science, and Industry Division Summary The worldwide rate of corporate mergers and acquisitions (M&A) activity declined during 2001, and 2002 was a year of serious consolidation as corporations sought to restructure their operations through buying and selling of “non-essential” operations.1 This report provides a listing of the largest mergers (announced value of at least two billion U.S. Dollars) or acquisitions for the year January 1, 2002 to December 31, 2002.† 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. Largest Mergers or Acquisitions: 2002 (ranked by value) (All amounts cited are U.S. Dollars) Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Date Value Announced Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. 206.04 Meiji Life Mutual insurance company Yasuda Mutual Life Insurance Mutual insurance company 1/24/02 April 2004 (projected) Pfizer, Inc. Pharmaceuticals Pharmacia Corp. Pharmaceuticals 7/15/02 Pending* 52.16 Taishin Financial Holding Co. Banking and finance Shin Kong Financial Holding Co. Banking and finance 6/25/02 Pending* 29.743 † For the top 25 mergers of 1998, see RS20502, Twenty-five Largest Mergers and Acquisitions by Corporations: 1998; for the top 25 mergers of 1999, see RS20503, Twenty-five Largest Mergers and Acquisitions by Corporations: 1999; for the top 25 mergers of 2000, see RS20504, Twenty-five Largest Mergers and Acquisitions by Corporations: 2000; and for the top 25 mergers of 2001, see RS20804, Twenty-five Largest Mergers and Acquisitions by Corporations: 2001. 1 Ratner, Juliana. “The nightmare on Wall Street continues MERGERS & ACQUISITIONS BAD YEAR FOR BANKERS, GOOD YEAR FOR BUYOUTS: * DEBT MARKETS HOLD UP WELL: * RESTRUCTURING EXPERTS IN DRIVING SEAT” Financial Times, December 23, 2002. p. 23. CRS-2 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Date Value Announced Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. 12/16/02 Pending* 20.04 Lattice Group Plc Natural Gas pipeline company 4/22/02 10/21/02 17.93 Telia AB Telecommunications TeliaSonera Sonera Corporation Oyj Telecommunications 3/26/02 12/9/02 17.54 HSBC Banking and finance Household International Banking and finance 11/14/02 Pending* 14.24 PanCanadian Energy Energy company EnCana Corporation Alberta Energy Energy company 1/27/02 4/8/02 12.04 Northrop Grumman Inc. Defense conglomerate TRW Inc. Conglomerate 2/22/02 12/11/02 11.84 J.P. Morgan, Chase & Co. Banking and finance Providian Financial’s Credit card business 1/17/02 1/17/02 8.24 South African Breweries Plc Brewing SAB Miller Plc Miller Brewing Company Brewing 4/3/02 7/9/02 7.63 Carnival Corp. Cruise line operator P&O Princess Cruises Ltd. Cruise line operator 10/25/02 Pending* 7.36 Carlyle Group Welch Carson Anderson & Stowe Investors QwestDex (div. Qwest Inc.) Telephone directory publisher 8/20/02 11/8/02 7.057 Royal Dutch Shell Oil Enterprise Oil Plc Oil 4/2/02 5/10/02 6.2 Vodafone Plc Telecommunications Cegetel S.A. Telecommunications 10/16/02 Pending* Simon Property Group, Inc. Rouse Company Westfield Holdings Ltd. Shopping center owners/ operators Rodamco North America N.V. Shopping center owner/ operator 1/14/02 5/3/02 5.83 Citigroup Banking, finance, insurance Golden State Bancorp Banking and finance 5/22/02 11/7/02 5.84 Blackstone Group Investment group TRW Inc. Auto parts div. Conglomerate 11/19/02 Pending* 4.736 Imperial Tobacco Plc Tobacco Reemtsma Cigarettenfabriken GmbH Tobacco 3/7/02 3/7/02 4.564 USA Interactive E-commerce Ticketmaster Inc. E-commerce 6/3/02 10/9/02 4.53 Anthem Inc. Health services provider Trigon Healthcare Inc. Health services provider 4/29/02 7/31/02 4.45 Cadbury, Schweppes Plc Soft drinks, confectionary AdamsDiv., Pfizer, Inc. Confectionary 12/17/02 Pending* 4.24 Crédit Agricole Banking and finance Crédit Lyonnais Banking and finance National Grid Group Plc Electric Power distribution National Grid Transco Plc. 6.195 CRS-3 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Date Value Announced Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. Friedman, Billings Ramsey Group (FBR Group) Holding company FBR Asset Investment Real estate investment trust 11/15/02 Pending* 4.12 Manulife Financial Corp. Insurance company Canada Life Financial Corp. Insurance company 12/9/02 Pending* 4.16 AOL TimeWarner, Inc. Conglomerate TimeWarner Cable Inc. New part owned subsidiary TimeWarner Entertainment (27.6%) held by AT&T Comcast Cable television networks 8/21/02 Pending* 3.76 Coca-Cola Femsa S.A. Beverage bottler Panamerican Beverages Inc. Beverage bottler 12/23/02 Pending* 3.64 Wendel Investissement Kohlberg Kravis Roberts Investment partnership LeGrand S.A. Electrical parts 7/28/02 Pending* 3.583 Univision Communications Inc. Hispanic Broadcasting Corp. Spanish language broadcaster Spanish language broadcaster 6/12/02 Pending* 3.56 Madison Dearborn Partners Investment group Jefferson Smurfit Plc. Paper packaging manufacturer 6/17/02 9/3/02 3.53 IBM Information company PriceWaterhouseCoopers Consulting Consultant 7/30/02 10/1/02 3.56 Southern Cross Airports Corp. Airport operator Sydney Airport Corp. Airport operator 6/25/02 6/25/02 3.22 M&T Bank Banking and finance Allfirst Bank Banking and finance 9/26/02 Pending* 3.16 BP Plc Energy Veba Oel (49% not previously purchased) Oil company 5/28/02 10/2/02 3.054 Publicis S.A. Advertising BCom3 Advertising 3/7/02 9/25/02 3.04 Guidant Corp. Medical device manufacturer Cook Group, Inc. Medical device manufacturer 7/30/02 Pending* 3.06 Royal Dutch Shell Oil Pennzoil-Quaker State Oil Company Oil 3/25/02 10/1/02 2.94 General Electric Co. Conglomerate Deutsche Bank A.G. U.S. financing unit Banking and finance 9/16/02 Pending* 2.96 Norsk Hydro (44% owned by Norwegian government) Hydro Aluminum VAW Aluminum AG (owned by E. On AG) 1/7/02 3/12/02 2.83 Bertelsmann A.G. Communications Zomba Music Group Recorded music producer 6/11/02 11/26/02 2.746 Del Monte Foods Co. Food H.J. Heinz Co. North American food division Food 6/13/02 12/20/02 2.72 Deutsche Bahn A.G. Government-owned railway Stinnes A.G. Transportation company 7/3/02 10/18/02 2.74 CRS-4 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Date Value Announced Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. 8/6/02 9/12/02 2.63 Glencore International coal fields Commodity trader 2/21/02 3/20/02 2.54 Cisco Systems Inc. Networking router maker Andiamo Systems Storage area networking switchmaker 8/20/02 Pending* 2.54 David Murdock Investor Dole Food, Inc. Food company 9/23/02 Pending* 2.54 E.ON A.G. Energy TXU U.K. operations Energy 10/21/02 10/21/02 2.56 Crédit Agricole Banking and finance Finaref Software manufacturer 12/23/02 Pending* 2.52 Nestle S.A. Conglomerate Dreyer’s Grand Ice Cream, Inc. Ice cream maker 6/17/02 Pending* 2.45 Barilla Group Food Kamps A.G. Food 4/15/02 9/25/02 2.32 Gecina S.A. Real estate Simco S.A. Real estate 8/7/02 10/2/02 2.32 General Electric Co. Conglomerate ABB Ltd. financing division Conglomerate 9/4/02 11/29/02 2.36 9/22/02 Pending* 2.234 9/3/02 Pending* 2.214 6/10/02 7/24/02 2.24 Nestle S.A. Conglomerate Chef America Inc. Food Xstrata AG Minerals company R.H. Donnelly Co. Sprint Inc., directory div. Directory sales representative Directories DSM N.V. Conglomerate Roche S.A. Pharmaceuticals America Movil S.A. Telecommunications Telecom Americas S.A. Telecommunications General Electric Co. Inc. Conglomerate Instrumentarium Corp. Oy Medical technology 12/18/02 Pending* 2.22 Electricité de France, S.A. Power company Seeboard div. AEP Corp. Power company 6/18/02 6/18/02 2.15 IBM IT company Rational Software Software company 12/5/02 Pending* 2.14 Hitachi KK Conglomerate IBM, hard disk drive division IT company 6/04/02 12/31/02 2.053 Petro-Canada Oil company Veba oil fields (owned by BP plc) Oil Company 1/30/02 5/2/02 2.04 Scottish & Newcastle Plc Brewers Hartwall Oyj Brewers 2/14/02 7/3/02 2.04 Saudi Basic Industries Petrochemical div. DSM N.V. 4/4/02 6/30/02 2.04 Petrochemicals Conglomerate 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 sometimes vary 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: CRS-5 1 Source for value: Mergers & Acquisitions. 2 Source for value: Mergerstat. 3 Source for value: The Wall Street Journal. 4 Source for value: The Financial Times. 5 Source for value: The Washington Post. 6 Source for value: bloomberg.com 7 Source for value: forbes.com 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.