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- Company merger (3) (show_all)
Deal Logic Sprint / T-Mobile
(2019)
The two major US mobile operators, T-Mobile US Inc (T-Mobile) and Sprint Corp (Sprint), announced the merger of both firms in April 2018. The merger was initiated by T-Mobile that recently ranked as the third largest player in the US mobile telecommunication market. The transaction supports T-Mobile's aim to build the most extensive mobile network with the highest transmission capacity until 2024.
Deutsche Telekom AG and SoftBank will hold 42.0% and 27.0% of the new firm respectively. As a consequence of the deal, the new entity will challenge the top two market leaders Verizon and AT&T and reform the current telecommunication business landscape in the USA.
Deal Logic WABCO / ZF
(2019)
Anticipating future developments is not only a key task of every successful management team but also one of the most challenging ones. Sometimes, the pace of the markets towards a specific development can surpass the capable speed of change within a firm. In this case, acquisitions are a good option to not fall behind new or more agile competitors. The electrification of the automotive industry calls for new, innovative parts beyond the combustion engine. Due to the Original Equipment Manufacturers (OEMs) low Real Net Output Ratio, the automotive suppliers will be required to do most of the anticipation. ZF Friedrichshafen AG (ZF) is betting on breaks to be vital demand driver of the future, with their acquisition of WABCO Holdings Inc. (WABCO).
Deal Logic BB&T / SunTrust
(2019)
Two regional retail banks merging to become the 6th largest bank in the US sounds very much like inorganic growth. After all, that is how Chemical Bank, Manufacturer's Hanover Trust Company, Chase Manhattan Bank and J.P. Morgan became one of the largest banks in the world today. But an aspect which is more relevant today than ever is inorganic growth enabling organic growth. Scalability applies to technology on the revenue side as well as on the cost side and gives larger banks a crucial competitive advantage. The strategic option of consolidation seems to be something which was long overdue, considering the dynamic market environment.