11 largest failed deals in Europe

Below we describe the 11 deals in Europe, which in the end did not take place.

11. Vonovia / Deutsche Wohnen

When: February 2016

Transaction amount: € 14 billion

In 2015-2016 Vonovia tried to acquire Deutsche Wohnen, but this deal never took place.

The company specializing in real estate, offered shareholders € 14 billion, but only a third of them supported the proposal.

10. Endesa / Iberdrola

When: February 2001

Transaction amount: € 15.2 billion

The agreement to merge these two energy companies, providing housing and communal services, from 2000 could lead to the emergence of a common business, which was estimated at € 36.6 billion

In addition, the company would rank fourth in the world in terms of installed capacity.

However, companies chose not to bring the deal to the end and canceled it. As the reason for the cancellation of the transaction, they called the bureaucratic obstacles from the Spanish government.

9. HP / PwC consulting unit

When: November 2000

Transaction amount: up to € 17.8 billion

Before Hewlett Packard was at the center of litigation regarding the acquisition of Autonomy and before the division into two companies, Hewlett Packard took other, rather strange actions.

This includes attempts to acquire the PwC consulting division at a price of up to $ 18 billion.

Such a move, in the opinion of the company’s management, should have stimulated the development of technology consulting services.

However, the company soon decided to give up their attempts, as the parties could not agree on the conditions of purchase.

8. Aviva / Prudential

When: March 2006

Transaction amount: € 24.7 billion

A year and a half before the global financial crisis, which almost destroyed the banking system all over the world, Prudential demonstrated strong success in the market.

Profit growth in 2005 was 33%.

That is why the company made an offer to purchase for £ 17 billion from Aviva.

However, a week later, Prudential head Mark Tucker refused to discuss this deal.

In turn, Aviva abandoned its intention to buy the company.

7. PPG Industries / Akzo Nobel

When: June 2017

Transaction amount: € 26.9 billion

This was one of the most aggressive takeover attempts in which PPG Industries participated.

She tried to acquire the chemical company AkzoNobel.

PPG attacked AkzoNobel for three months, eventually making a final offer of € 26.9 billion, which was rejected.

6. Deutsche Boerse / London Stock Exchange

When: March 2017

Transaction amount: € 35.2 billion

This deal failed three times. The first two attempts were made in 2000 and 2004.

Then the companies agreed on the purchase price – £ 21 billion. However, competition issues seriously undermined this deal.

An important role was also played by the UK decision to leave the EU, which was made as a result of a referendum in 2016.

Political tensions around this decision have affected the business.

As a result, the European Commission blocked this deal in 2017.

5. Qualcomm / NXP Semiconductors

When: July 2018

Transaction amount: € 37.7 billion

After the deal went through almost all bureaucratic obstacles and almost reached the approval of the regulator, the deal became a bargaining chip in the political confrontation between China and the United States.

4. Eon / Endesa

When: April 2007

Transaction amount: € 42.3 billion

Endesa is on the list for the second time, now in the context of the proposed takeover by Eon.

In February 2006, the German energy giant led the Endesa takeover campaign.

The company made an offer for € 27.50 per share. European and Spanish regulators approved the deal, but competing companies Enel and Acciona acquired minority stakes in Endesa.

Although the value of the offer was raised to € 40 per share, Eon admitted defeat and was instead forced to buy some Enel and Acciona assets worth € 10 billion

3. AbbVie / Shire

When: October 2014

Transaction amount: € 42.6 billion

Shire was one of many companies that moved to Ireland due to low taxation.

An agreement was signed to buy the company for £ 32 billion; the buyer was the American company AbbVie, which also wanted to use this agreement in order to transfer the corporate base to Jersey for tax reasons.

Nevertheless, the US Treasury Department paid attention to this deal. As a result, the board of directors and shareholders of AbbVie opposed it.

2. Monsanto / Syngenta

When: August 2015

Transaction amount: € 43.7 billion

The American agricultural giant Monsanto planned a rather aggressive takeover by the Swiss company Syngenta.

The initial offer in the amount of $ 45 billion was made in May 2015, but then Monsanto made the following offer, already in the amount of $ 47 billion

However, Syngenta again rejected the proposal, calling it “inadequate.”

Monsanto refused to buy in August 2015. Almost three years later, Bayer acquired the company for $ 66 billion.

And the company Syngenta received an offer to which she agreed. ChemChina acquired the company for $ 43 billion

1. Kraft Heinz / Unilever

When: February 2017

Transaction amount: € 134.3 billion

In 2017, Kraft Heinz shocked the market by making an offer of $ 143 billion for the purchase of Unilever. The offer was rejected.

The company eventually abandoned its claims. According to media reports, the company said that they underestimated how difficult it would be to get approval from the regulator and shareholders.

However, this proposal led to an increase in activity at Unilever: the company revised its development strategy and sold off some of its assets shortly after.