Corporate finance services: What were the biggest M&A deals in 2022?
Despite all the factors working against it, including geopolitical turmoil, inflation, and high-interest rates, M&A activity enjoyed quite the boom throughout 2022. While it couldn’t reach the highs of 2021, 2022’s numbers are relatively level with what we used to expect from the market before the pandemic.
So, what were some of the highlights of the M&A market in 2022? In today’s blog, we’ll be looking back at some of the biggest, most talked about deals.
Adobe acquires design platform Figma
In a deal worth around $20 billion, Adobe entered a definitive merger agreement to acquire Figma, the collaborative design platform, in September of 2022. The CEO of Adobe, Shantanu Narayen, stated that the acquisition would expand Adobe’s portfolio of products, but the market didn’t seem all that convinced; within the first month of the acquisition’s announcement, Adobe stock had dropped by 30%. At the time, analysts chalked this up to Adobe spending far too much on the platform.
Elon Musk acquires social media giant Twitter
Perhaps the most talked about M&A deal of the year, Musk acquired Twitter for a staggering $44 billion, putting him in charge of the most influential social media platform in the world. Even now that we’re well into 2023, it seems like Twitter will be making headlines for the foreseeable. It was always going to be a controversial acquisition, but at the time of writing, Musk has suffered quite a blow to his fortune thanks to a slew of questionable decisions in the deal’s wake.
Microsoft offers to acquire gaming corporation Activision Blizzard
Another controversial acquisition, Microsoft’s $69 billion bid to buy gaming corporation Activision Blizzard has led to the FTC actually suing to put a stop to the deal. They claim that it would harm competition within the gaming console market. Obviously, deals this big are a process, but if it does end up going through in 2023, Microsoft would have their hands on some huge IPs, including World of Warcraft and Call of Duty.
Supermarket chain Kroger merges with Albertsons
Over in the retail industry, it was announced in October of 2022 that two of the biggest American supermarket chains, Kroger and Albertsons, would be merging. The deal, worth $24.6 billion, saw Kroger acquire the common & preferred stock of Albertsons for $34.10 a share. Experts argue that this could lead to store closures and rising prices, as well as other negative outcomes.
Sustainable products company DSM merges with Firmenich
Formerly focused on petrochemicals and materials, the Dutch company DSM announced back in 2021 that this focus would be shifted to sustainable food products, as well as health products. Since the company sold its materials division, their transition to food & health products has been rapid, and in 2022 it was announced that they would be merging with the Swiss flavours company called Firmenich. Going forward, the companies will go by DSM-Firmenich.
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