Top 10 Most Expensive Business Acquisition by 1990s
Common ways to expand the business include making a strategic acquisition or merging with another business even with the most expensive acquisition. An acquisition is when you buy another business and end up controlling it. Here are the list of top 10 most expensive business acquisition by 1990s.
10. Worldcom – MCI Communications (Transaction value $42,000 million)
On November 10, 1997, WorldCom and MCI Communications announced their merger to form MCI WorldCom, making it the most expensive acquisition. On September 15, 1998 the new company, MCI WorldCom, opened for business, after MCI divested itself of its successful “internetMCI” business to gain approval from US DOJ.
9. Qwest Communications – US WEST (Transaction value $48,000 million)
Qwest Communications International, Inc. was a large United States telecommunications carrier. Qwest provided local service in 14 western U.S. states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming. Qwest merged with “Baby Bell” US West on June 30, 2000 through an apparent hostile takeover and this is the most expensive acquisition. Philip Anschutz owned 17.5% of the resulting company.
8. BP – Amoco (Transaction value $53,000 million)
British Petroleum merged with Amoco (formerly Standard Oil of Indiana) in December 1998,this most expensive acquisition becoming BP Amoco plc. In 2000, BP Amoco acquired Arco (Atlantic Richfield Co.) and Burmah Castrol plc. In many states BP continued to sell Amoco branded petrol even in service stations with the BP identity as Amoco was rated the best petroleum brand by consumers for 16 consecutive years and also enjoyed one of the three highest brand loyalty reputations for petrol in the US, comparable only to Chevron and Shell.
7. Bell Atlantic – GTE (Transaction value $53,360 million)
It was among the most expensive acquisition. It was the result of a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City since the merger with NYNEX in 1996, and GTE, which was in the process of moving its headquarters from Stamford, Connecticut, to Irving, Texas.
6. Vodafone Group – AirTouch Communications (Transaction value $60,000)
On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. The merged company commenced trading on 30 June 1999 and this is the most expensive acquisition.
5. SBC Communications – Ameritech Corporation (Transaction value $63,000 million)
In May 1998, Ameritech and SBC announced the most expensive acquisition, in which SBC would take over Ameritech. After making several organizational changes (such as the sale of Ameritech Wireless to GTE) to satisfy state and federal regulators, the two merged on October 8, 1999.
4. Citicorp – Travelers Group (Transaction value $73,000 million)
Citigroup was formed on October 9, 1998, following the most expensive acquisition of Citicorp and Travelers Group to create the world’s largest financial services organization. The history of the company is, thus, divided into the workings of several firms that over time amalgamated into Citicorp, a multinational banking corporation operating in more than 100 countries; or Travelers Group, whose businesses covered credit services, consumer finance, brokerage, and insurance.
3. Exxon- Mobil (Transaction value $77,200 million)
Exxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard. This is one of the most expensive acquisition.
2. Pfizer – Warner-Lambert (Transaction value $90,000 million)
Warner–Lambert was founded as a drug store in 1856 in Philadelphia by William R. Warner. Inventing a tablet-coating process gained Warner a place in the Smithsonian Institution. Parke–Davis was founded in Detroit in 1866, by Hervey Parke and George Davis. Warner–Lambert took over Parke–Davis in 1976, and acquired Wilkinson Sword in 1993 and Agouron in 1999 and it’s one of the most expensive acquisition.
1. Vodafone Airtouch PLC- Mannesmann (Transaction value $183,000 million)
In November 1999, Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone’s interest in Mannesmann had been increased by the latter purchase of Orange, the UK mobile operator. The hostile takeover provoked strong protest in Germany, and a “titanic struggle” which saw Mannesmann resist Vodafone’s efforts. However, on 3 February 2000, the Mannesmann board agreed to an increased offer of £112bn, then the largest corporate merger ever. This merger is the top of the most expensive acquisition.