Top M&A deals of 2021 & 2022 That You Must Know
We strongly advise you to be prepared with some deals (M&As/ IPOs/ SPACs) if you want to crack #investmentbanking #interviews. M&A activity was on an all-time boom in 2021 at $5.9 trillion, showing how COVID did not end up dampening the deal-making sentiment in its aftermath.
Scroll down for the 2021 performance of banks.
1️⃣ Discovery Inc. and AT&T Inc.’s Warner Media business ($43 bn)- Announced in May 2021 with the intent to combine operations, creating one entertainment firm. AT&T receive 71% shares of the new entity while Discovery get 29% stakes. Financial advisers on the deal included JP Morgan Securities and Goldman Sachs
2️⃣ Altimeter Growth Corp’s acquisition of Grab ($39.6 billion)- It was the 2nd largest deal of the year, announced in April 2021. Grab’s financial advisors were J.P. Morgan and Evercore while Altimeter was represented by Travers Thorp Alberga and Ropes & Gray LLP
3️⃣ Acquisition of KCS by Canadian National Railway (US$30 bn)- The combined entity allows an integrated logistics network that extends beyond Canada to the US and Mexico. Canadian’s financial advisors were J.P. Morgan, RBC Capital Markets and Centerview Partners LLC while KCS was advised by BoFA and Morgan Stanley. It’s one of the biggest transport, infrastructure and logistics industry deals of 2021.
4️⃣ GE Capital Aviation Service acquisition of AerCap Holdings ($30 bn): Announced in March 2021, this was a mixed cash and equity transaction intended to create an industry-leading aviation lessor with a broader offering. GE plans to use this divestiture to focus on its core industries. Its financial advisors were Goldman Sachs and PJT Partners while Cravath, Swaine & Moore advised AerCap.
5️⃣ MSP Recovery and Lionheart Acquisition Corporation II ($32.6 bn): One of the top 3 SPAC deals under which MSP (specialized in Medicare Secondary Payer recovery rights and recovering improperly paid Medicaid) will go public. Lionheart is a special purpose acquisition company set up to aid MSP Recovery in becoming a publicly listed company.
Deals that shaped the M&A landscape in 2021 emerged from infrastructure, transport, TMT, financial services, energy, and healthcare sectors with the others in IT, defense, and aerospace. The record-breaking increase in private equity buyouts (like KKR’s potential takeover of Telecom Italia, valued at $40 bn) and domestic government policies will only strengthen the 2022 deal-making.
2 key points on the Asian deal-making and league table:
📌 China led the M&A activity with 2,179 deals, including the $111.5 bn merger between Sichuan Transportation Investment Group (STIG) and Sichuan Railway Investment Group.
📌 APAC M&A league table (GlobalData 2021 report):
1. Goldman Sachs held the top spot (50 deals/$148.4 bn)
2. Macquarie (41 deals/$73.5bn)
3. Citi (33 deals/$62bn)
4. Morgan Stanley (39 deals/$60bn)
5. BofA (29 deals/$54.7bn)
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