Largest Mergers and Acquisitions by Corporations: 2003

Order Code RS21415 Updated January 5, 2004 CRS Report for Congress Received through the CRS Web Largest Mergers and Acquisitions by Corporations: 2003 John Williamson Technical Information Specialist Resources, Science, and Industry Division Summary After declining in numbers for two years, the numbers of mergers and acquisitions worldwide had a mixed year in 2003.1 This report provides a listing of the largest mergers (announced value of at least two billion U.S. Dollars) or acquisitions during 2003 through December 31, 2003. 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. (For the top 25 mergers of 1998, see CRS Report RS20502, Twenty-five Largest Mergers and Acquisitions by Corporations: 1998; for the top 25 mergers of 1999, see CRS Report RS20503, Twenty-five Largest Mergers and Acquisitions by Corporations: 1999; 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 2001, see CRS Report RS20804, Twenty-five Largest Mergers and Acquisitions by Corporations: 2001; and, for the top 25 mergers of 2002, see CRS Report RS21147, Largest Mergers and Acquisitions by Corporations: 2002.) This report will not be updated. Largest Mergers or Acquisitions: 2003 (ranked by value) Acquirer, Sector, and New Name (if applicable) (All amounts cited are U.S. Dollars) Target Firm Date Date Value and Sector Announced Completed ($ billions) Bank of America Banking and finance Fleet Financial Corp. Banking and finance ExxonMobil Energy OAO Yukos – 40% Energy Anthem Inc. Health insurance Travelers Property Casualty Corp. Insurance 10/27/03 Pending* $47.06 10/2/03 Pending* $25.04 WellPoint Health Networks Inc. Health insurance 10/27/03 Pending* 16.46 St. Paul Cos. Insurance 11/17/03 Pending* 16.26 1 Politi, James, and Lina Saigol. “M&A bounces back as dealmakers return.” Financial Times, December 29, 2003. p. 17; and, Sidel, Robin. “Year-End Review of Markets & Finance 2003; Mergers and Acquisitions Pick Up.” Wall Street Journal, January 2, 2004. p. R2. Congressional Research Service ˜ The Library of Congress CRS-2 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector AO Yukos Oil Co. Energy OAO YukosSibneft OAO Sibneft Energy General Electric Co. Conglomerate Vivendi Universal S.A. Entertainment, cable networks Manulife Financial Corporation John Hancock Financial Services Insurance group Insurance group Date Date Value Announced Completed ($ billions) 4/22/03 De-merger announced 12/9/03 15.06 9/1/03 Pending* 14.06 9/29/03 Pending* 11.04 10/10/03 Pending* 9.54 2/11/03 2/21/03 8.886 General Electric Co. Conglomerate Amersham plc Medical diagnostic substances Schemaventotto SpA Benetton holding company Autostrade SpA Private highway operator France TelecomS.A. Telecommunications Orange S.A. Telecommunications 9/1/03 Pending* 7.693 First Data Corp. Credit-card processor Concord EFS Inc. ATM machine network 4/2/03 Pending* 7.04 News Corporation Media conglomerate Hughes Electronics Satellite broadcaster 4/9/03 12/22/03 6.64 Procter & Gamble Conglomerate Wella AG – 80% Hair care products 3/18/03 9/03/03 6.96 BP Energy TNK OAO Sidanco Energy 2/11/03 8/29/03 6.756 Biogen Inc. Pharmaceuticals Biogen Idec Inc. Idec Pharmaceuticals Pharmaceuticals 6/23/03 11/12/03 6.446 Oracle Inc. Software PeoplelSoft Inc. Software 6/6/03 Pending* 6.36 R.J. Reynolds Tobacco Holdings, Inc. Tobacco Brown & Williamson div. British-American Tobacco plc. Tobacco 10/27/03 Pending* 6.25 Enterprise Product Partners Energy GulfTerra Energy Partners Energy 12/15/03 Pending* 5.84 General Electric Corp. Conglomerate Transamerica Finance Corporation Commercial lending 1/04 (Projected) 5.44 Devon Energy Corp. Energy Ocean Energy Corp. Energy Tchibo Holding AG Conglomerate 8/5/03 2/24/03 4/25/03 5.36 Beiersdorf AG Personal care products 10/23/03 Pending* 5.24 KfW (Kreditanstalt Fuer Wiederaufbau) Banking and finance Deutsche Post AG Postal service provider 11/17/03 Pending* 5.14 Great-West Lifeco Insurance Canada Life Insurance 2/18/03 7/10/03 4.74 Alcan Inc. Aluminium producer Pechiney S.A. Aluminium producer 7/7/03 12/16/03 4.54 ArvitMeritor Inc. Auto Parts Dana Corp. Auto Parts 7/8/03 11/23/03 Withdrawn 4.44 Koch Industries Private Invista div. E.I. DuPont Co. Testile manufacturer 11/17/03 Pending* 4.44 CRS-3 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Spirit Group Plc Blackstone Group CVC Capital Partners Texas Pacific Group Pub manager and investors Scottish & Newcastle pubs division Brewing 10/6/03 11/7/03 4.153 Australia and New Zealand Banking Group Ltd. Banking and finance National Bank of New Zealand Banking and finance 8/12/03 Pending* 4.124 Vivendi Environnement Royal Bank of Scotland Utility operator Southern Water plc Utility 4/29/03 Pending* 3.864 R.R. Donnelley & Sons Co. Printers Moore Wallace Inc. Printers 11/10/03 3/04 (Projected) 3.74 BC Partners CVC Capital Partners Investitori Associati Permira Advisers Investors SEAT Pagine Gialle Telephone directories 6/11/03 Pending* 3.62 Deutsche Bank, et al. Investors Northumbrian Water (div. Suez SA) Utility 5/17/03 5/23/03 10/31/03 Pending* 5/20/03 10/2/03 3.226 1/7/02 8/5/03 3.14 Teva Pharmaceutical Industries Sicor Inc. Ltd. Medical/Pharmaceutical Pharmaceuticals Zimmer Holdings Inc. Centerpulse AG Medical device manufacturer Medical device manufacturer Date Date Value Announced Completed ($ billions) 3.584 3.46 Konica Imaging Konica Minolta Holdings Minolta Imaging Riverwood Holding Inc. Conglomerate Graphic Packaging International Corp. Carton manufacturer 3/26/03 8/8/03 3.02 Citigroup Banking and finance Sears, Roebuck & Co. Credit Card Credit card/finance division 7/15/03 11/1/03 3.03 TCL International Holdings, Ltd. Electronics Thomson S.A. consumer electronics division (RCA) Electronics 11/3/03 Pending* 3.06 BB&T Corp. First Virginia Banks Inc. Banking and finance 1/21/03 10/17/03 2.976 Banking and finance Xstrata plc Mining M.I.M. Holdings Ltd. Mining 4/7/03 6/20/03 2.964 United Health Group, Inc. Health insurance Mid-Atlantic Medical Services, Inc. 10/27/03 Health insurance Pending* 2.956 Henkel KGaA Consumer products Dial Corp. Consumer products 12/15/03 Pending* 2.8753 Johnson & Johnson Medical/pharmaceutical Scios, Inc. Biotechnology 2/10/03 4/29/03 2.75 CVC Capital Texas Pacific Group Private equity groups Debenhams plc Department stores 9/12/03 12/5/03 2.654 7/22/03 10/31/03 2.636 Lehman Brothers Holdings Inc. Neuberger Berman Inc. Securities trading Asset management CRS-4 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector British American Tobacco Plc Tobacco Ente Tabacchi Italiani SpA Tobacco 7/16/03 10/28/03 2.66 Edgar Bronfman, Jr. Thomas H. Lee Partners Haim Saban Bain Partners Providence Equity Partners Investors Time Warner music division Entertainment 11/22/03 Pending* 2.64 Finanziaria de Agostini SpA. Investment company Toro Assicurazioni SpA Insurance company 3/24/03 Pending* 2.56 6/26/03 8/29/03 2.53 AIG GE Edison Life Insurance Co. Insurance Insurance AIG Edison Life Insurance Co. Date Date Value Announced Completed ($ billions) Goldman Sachs Investment bank Cogentrix Energy Inc. Electricity generator 10/20/03 Pending* 2.44 Oregon Electric Construction Inc. Electrical contractor Portland General Electric Electricity distributor 11/18/03 Pending* 2.42 Federal Express Transportation Kinko’s Copy center operator 12/30/03 Pending* 2.46 Lockheed Martin Conglomerate Titan Corporation Defense contractor 9/15/03 3/04 (Projected) 2.384 Goldman Sachs Capital Partners Apax Partners, Providence Equity Partners Investors Deutsche Telekom AG cable tv Cable television 1/28/03 4/1/03 2.34 DnB Holding ASA Banking and finance Gjensidige NOR Sparebank ASA Banking and finance 3/18/03 Pending* 2.34 Exelon Corp. Energy Illinois Power Energy 11/3/03 Withdrawn 11/24/03 2.236 Ripplewood Holdings Investor Japan Telecom fixed-line business Telecommunications 8/13/03 11/14/03 2.184 Novartis AG Pharmaceuticals Roche Holding AG Pharmaceuticals 1/23/03 Pending* 2.173 PMI Group, Inc. Private mortgage insurer Blackstone Group Cypress Group CVC Partners Investors Financial Guaranty Insurance (div. GE) Guarantees financial obligations 8/5/03 Pending* 2.163 Heineken NV Brewer BBAG Brewer 5/1/03 10/10/03 2.144 DSM NV Pharmaceuticals, chemicals Roche Holding AG, div. Vitamins, fine chemicals 2/10/03 10/3/03 2.12 Prudential Financial, Inc. Insurance and finance Cigna retirement services Insurance and finance 11/18/03 Pending* 2.14 Bank of New York Co. Banking and finance Pershing clearing unit, CSFB Banking and finance 1/7/03 5/1/03 2.06 Federal-Mogul Automotive parts Bendix Brakes 1/31/03 Pending* 2.04 CRS-5 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Telefónica S.A. Communications Terra Lycos S.A. Telecommunications PeopleSoft Inc. Software JD Edwards & Co. Software E.On AG Energy Blackstone Group LP Investors Date Date Value Announced Completed ($ billions) 5/28/03 7/25/03 2.04 6/2/03 7/17/03 2.03 Midlands Electricity Plc Utility 10/21/03 Pending* 2.04 Celanese AG Chemicals 12/16/03 Pending* 2.06 * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. 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: 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.