Largest Mergers and Acquisitions by Corporations: 2005

Order Code RS22051 Updated November 18, 2005 CRS Report for Congress Received through the CRS Web Largest Mergers and Acquisitions by Corporations: 2005 John Williamson Information Resources Specialist Knowledge Services Group Summary Mergers and acquisitions activity increased in 2004 over 2003 and 2005 looks to be an even bigger year for m&a.1 This report provides a listing of the largest mergers (announced value of at least two billion U.S. Dollars) or acquisitions during 2005 through November 18, 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. (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; for the top 25 mergers of 2002, see CRS Report RS21147, Largest Mergers and Acquisitions by Corporations: 2002; for the top mergers of 2003, see CRS Report RS21415, Largest Mergers and Acquisitions by Corporations: 2003; and for the top mergers of 2004, see CRS Report RS21726, Largest Mergers and Acquisitions by Corporations: 2004.) This report will be updated monthly. Largest Mergers or Acquisitions: 2005 (ranked by value) (All amounts cited are U.S. Dollars) Acquirer, Sector, and New Name (if applicable) Procter & Gamble Conglomerate Bank of America Banking and finance Target Firm and Sector Gillette Inc. Conglomerate MBNA Inc. Banking and finance Date Date Value Announced Completed ($ billions) 1/28/05 10/1/05 $56.9a 6/30/05 Pending* 1 35.0a Saigol, Lina. “Biggest M&A boom since 2000 coming.” FT.com, November 16, 2005. http://www.news.ft.com/cms/s/a8a71814-560b-11da-b04f-00000e25118c.html (last viewed November 16, 2005); and, Kay, John. “Why many mergers are a triumph of hope over experience.” Financial Times, November 15, 2005. p. 15. Congressional Research Service ˜ The Library of Congress CRS-2 Acquirer, Sector, and New Name (if applicable) Telefónica SA Telecommunications Gas Natural SDB SA Natural gas supplier Unicredito Italiano SpA Banking and finance Chevron Energy Kroger Co. Groceries SBC Communications Inc. Telecommunications AT&T Inc. Weather Investments SAE Naguib Sawiris et al. Clayton, Dubilier & Rice LLC Carlyle Group Merrill Lynch Global Private Equity Investors Time Warner Comcast Conglomerates Suez SA Utilities Koch Industries Commodities OAO Gazprom Natural gas producer MetLife Inc. Life insurance Silver Lake Partners LLC Bain Capital Blackstone Capital Carlyle Group Kohlberg, Kravis, Roberts Texas Pacific Group Thomas H. Lee Partners Investors Federated Department Stores Department store operator France Telecom SA Telecommunications INCO Metals producer Pernod Ricard S.A. Wine and spirits Verizon Corp. Telecommunications Berkshire Hathaway Corp. Holding company Barrick Gold Corp. Mining Duke Energy Corp. Energy Ineos Group Holdings Plc Petrochemicals Target Firm and Sector O2 Plc. Telecommunications Endesa SA Power company HVB Group AG Banking and finance Unocal Energy Albertson’s Inc. Grocerties AT&T Corp. Telecommunications Date Date Value Announced Completed ($ billions) 10/31/05 Pending* 31.5c 9/5/05 Pending* 28.3c 5/26/05 Pending* 20.17a 3/7/05 8/10/05 19.4b 10/24/05 Pending* 16.5a 1/27/05 11/18/05 15.7a Wind SpA Telecommunications Hertz (division of Ford Motor Co.) Automobile rentals 4/11/05 8/12/05 15.0a 9/12/05 Pending* 15.0b Adelphia Cable operator 1/31/05 Pending* 14.0a 8/9/05 Pending* 14.0c 11/14/05 Pending* 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 Pending* 11.0a 10/11/05 Pending* 11.0b 2/4/05 7/26/05 10.0a 1/14/05 Pending* 9.74c 5/24/05 Pending* 9.4c 10/31/05 Pending* 9.2a 5/9/05 8/2006 9.1c 10/7/05 Pending* 9.0a 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 Allied Domecq Plc Conglomerate MCI Corp. Telecommunications PacifiCorp Energy Placer Dome Inc. Mining Cinergy Corp. Energy Innovene, Inc. Petrochemicals CRS-3 Acquirer, Sector, and New Name (if applicable) Valero Energy Inc. Energy Kohlberg, Kravis, Roberts Bain Capital Vornado Realty Investors ABN Amro Holding NV Banking and finance UnitedHealth Inc. Health insurer Novartis AG Pharmaceuticals 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 VNU NV Media 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 Washington Mutual Banking and finance Hilton Hotels Corp. Lodging NTL Inc. Cable operator News Corp. Ltd. Conglomerate Oracle Corp. Inc Software Dubai Ports World Port operator Target Firm and Sector Premcor, Inc. Energy Toys ‘R Us Retailer Banca Antonveneta SpA Banking and finance PacifiCare Health Systems, Inc. Health insurer Hexal AG Pharmaceuticals 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 IMS Health Inc. Health industry data 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 Providian Banking and finance Hilton International Plc Lodging Telewest Global Inc. Cable operator Fox Entertainment Group, Inc. Entertainment Siebel Systems Inc. Customer service software Peninsular & Oriental Steam Navigation Co., Plc Port operator Date Date Value Announced Completed ($ billions) 4/24/05 9/1/05 8.7a 8.6c 3/17/05 7/21/05 3/30/05 Pending* 8.16c 7/6/05 Pending* 8.14c 2/21/05 5/28/05 8.37a 7/18/05 Pending* 7.8a 2/25/05 9/1/05 7.7c 10/10/05 Pending* 7.5a 7/25/05 Pending* 7.4c 3/15/05 6/6/05 7.39b 3/8/05 6/3/05 7.3b 9/11/05 Pending* 7.1c 7/11/05 Abandoned 7.0c 9/16/05 Pending* 6.9c 11/17/05 Pending” 6.9a 11/18/05 Pending* 6.8c 7/21/05 Pending* 6.62a 9/27/05 Pending* 6.6c 6/6/05 10/1/05 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 10/30/05 Pending* 5.32a 6.45a CRS-4 Acquirer, Sector, and New Name (if applicable) Cinven Group Ltd. BC Partners Ltd. Investors Boots Group Plc Drugstore chain Alliance Boots Plc Punch Taverns Plc Tavern operator Capital One Financial Banking and finance Target Firm and Sector Amadeus Global Travel Distribution SA Travel Alliance Unichem Plc Drugstore chain Barclays Plc Banking and finance Altria Group Conglomerate Novartis AG Pharmaceuticals Deutsche Annington GmbH Real estate Mittal Steel N.V. Steel Yuji Tsutsumi Seiji Tsutsumi Investors Alltel Telecommunications Occidental Petroleum Energy R.H. Donnelley Corp. Publisher OAO Lukoil Energy China National Petroleum Co. Energy Fresenius Medical Care AG Kidney dialysis BAE Systems Plc. Defense/aerospace Wachovia Corp. Inc. Banking and finance adidas-Salomon AG Apparel Gala Group Holdings Plc. Gambling Marathon Oil Corp. Energy Legg, Mason & Co. Banking and finance Texas-Pacific Group Apollo Management LP TowerBrook Capital Partners LLP Investors Whirlpool Inc. Appliances Porsche AG Automobiles Absa Group Ltd. Banking and finance PT HM Sampoerna Cigarette maker Chiron Corp. Inc. Pharmaceuticals Viterra AG Real estate Kryvorizhstal Steel Seibu Railway KK Transportation and real estate Spirit Group Ltd. Tavern operator Hibernia Bank Banking and finance Western Wireless Telecommunications Vintage Petroleum Inc. Energy Dex Media Inc. Publisher PetroKazakhstan Energy PetroKazakhstan Energy Renal Care Group Inc. Kidney dialysis United Defense Technologies Inc. Defense contractor Westcorp Banking and finance Reebok International Ltd. Apparel Coral Eurobet Plc. Gambling Marathon Ashland Petroleum LLC Petroleum refiner Citigroup’s fund unit Banking and finance Drax Group Ltd. power plant Electricity generation Maytag Inc. Appliances Volkswagen AG (20%) Automobiles Date Date Value Announced Completed ($ billions) 1/12/05 7/4/05 5.8a 10/3/05 Pending* 5.6a 6/25/05 Pending* 5.47b 3/6/05 Postponed due to Hurricane 4/25/05 7/27/05 5.35b 5.2c 3/14/05 5/30/05 5.1c 10/31/05 Pending* 5.1c 5/17/05 5/17/05 5.0c 10/24/05 Pending* 4.8a 10/31/05 Pending* 4.8b 1/6/05 8/1/05 4.3a 10/13/05 Pending* 4.3a 10/3/05 Pending* 4.2b 10/25/05 Pending* 4.18c 8/22/05 Pending* 4.18b 5/4/05 Pending* 4.0a 3/7/05 6/24/05 3.97c 9/12/05 Pending* 3.91c 8/2/05 Pending* 3.8c 10/7/05 Pending* 3.8c 4/28/05 6/30/05 3.7a 6/24/05 Pending* 3.7c 10/13/05 Pending* 3.63c 7/16/05 Pending* 3.6b 9/24/05 Pending* 3.6c CRS-5 Acquirer, Sector, and New Name (if applicable) Liberty Media Conglomerate Liberty Global Reckitt Benckiser Ple. Home products Adobe Systems Inc. Software Blackstone Group LP Investors Intelsat Ltd. Satellite telecommunications TeliaSonera AB Telecommunications Repsol YPF S.A. Energy CVC Capital Partners Ltd. Investor 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 Target Firm and Sector UnitedGlobalCom Inc. Telecommunications American Tower Corp. Wireless towers Medicis Pharmaceutical Pharmaceuticals Publicis Groupe SA Advertising 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 Foster’s Group Ltd. Beverages SpectraSite Inc. Wireless towers Inamed Prosthetics maker Aegis Group Plc Advertising 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 Date Date Value Announced Completed ($ billions) 1/18/05 6/15/05 3.5b 10/7/05 Pending* 3.43c 4/17/05 Pending* 3.4a 6/14/05 8/16/05 8/29/05 Pending* 3.2c 3/25/05 Pending* 3.1a 6/2/05 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 3/15/05 Pending* 2.8b 9/21/05 Pending* 2.8c 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 Pending* 2.57c SBS Broadcasting SA Telecommunications 8/22/05 Pending* 2.55b Southcorp Ltd. Winemaker 4/22/05 5/27/05 2.46a Boots Group’s health-care unit Pharmaceuticals Macromedia Inc. Software Wyndham International Inc. Hotels PanAmSat Satellite teleocmmunications Turkcell Iletisim Hizmetleri AS Telecommunications Royal Dutch/Shell Group’s LPG assets Liquified petroleum gas ProSiebenSat.1 Media AG Broadcasting NIB Capital Bank NV Banking and finance 3.24c CRS-6 Acquirer, Sector, and Target Firm Date Date Value New Name (if applicable) and Sector Announced Completed ($ billions) Norsk Hydro ASA Spinnaker Exploration Co. 9/18/05 Pending* 2.45a Conglomerate Oil and gas General Electric Co. Bombardier Inc. finance unit 4/17/05 6/1/05 2.4c Conglomerate Conglomerate Macquarie Bank Ltd. YBR Group NV 5/16/05 6/1/05 2.3c Macquarie Capital Alliance Telephone directory publisher Group Nikko Cordial Corp. Caisse de Depot et Placement du Quebec Investors Medco Health Solutions Accredo Health 2/23/05 8/18/05 2.2b Pharmaceuticals distributor Specialty pharmaceuticals Liberty Global Inc. Cablecom AG 9/30/05 Pending* 2.2c Cable-television systems Cable-television systems Postbank AG BHW AG 10/25/05 Pending* 2.16b Banking and finance Banking and fianance Talisman Energy, Inc. Paladin Resources Plc 10/20/05 Pending* 2.15c Oil Oil Cimarex Energy Co. Magnum Hunter Resources Co. 1/26/05 6/7/05 2.1a Natural gas Natural gas Aviva plc RAC plc 3/9/05 5/27/05 2.1a Insurance Automobile servicing Ericsson AB Marconi Corp. 10/25/05 Pending* 2.1c Telecommunication equipment Telecommunications equipment IAC/InterActiveCorp. Ask Jeeves Inc. 3/21/05 8/9/05 2.0a Internet conglomerate Internet search engine Statoil ASA Encana Corp. Gulf of Mexico 4/28/05 7/1/05 2.0a Norwegian government oil and gas properties OAO Lukoil Nelson Resources Ltd. 9/30/05 Pending* 2.0c Petroleum Oil * 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: a Source for value: The Wall Street Journal. b Source for value: The Financial Times. c Source for value: bloomberg.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.