After a challenging and volatile 2023 that witnessed M&A activity fall to its lowest level in 10 years, 2024 brought a much-needed resurgence to the dealmaking space, led by the technology, healthcare, and finance industries.
In 2024, global M&A volume reached $3.4 trillion, 15% greater than the volume in 2023 but still about half the peak of $6.1 trillion seen in 2021. The M&A market saw a shift toward fewer but higher-value transactions in 2024, with corporates dominating the landscape. Two prominent deals were ExxonMobil’s acquisition of Pioneer Natural Resources, which was the largest transaction of the year, as well as Mars’ acquisition of Kellanova — the second largest transaction of 2024.
North America led global M&A activity with 50% of deal volume, followed by EMEA at 25% and APAC at 22%. The tech sector accounted for 19% of global deal volume, followed by healthcare at 10% and finance at 9%.
Below, we highlight some of the biggest and most impactful M&A deals from 2024.
ExxonMobil’s Acquisition of Pioneer Natural Resources: $64.5 Billion (Closed in May 2024)
Oil and gas giant ExxonMobil’s all-stock acquisition of Pioneer Natural Resources has enabled them to double their footprint in the Permian Basin. ExxonMobil now holds the largest contiguous acreage position in the Permian Basin, with double the number of low-cost net drilling locations compared to their closest competitor.
ExxonMobil stated that they expect to achieve more than $3 billion in annual synergies from the Pioneer acquisition, a 50% increase from prior guidance. They also aim to double production in the Permian Basin to approximately 2.3 million oil-equivalent barrels per day by 2030.
Mars’ Acquisition of Kellanova: $35.9 Billion (Expected to Close in 2025)
The second-largest deal of 2024, this acquisition will allow candy giant Mars to officially move into the snack market. The deal combines Kellanova’s popular snack portfolio (including Pringles, Cheeze-Its, and Pop-Tarts) with Mars’ sweets portfolio (including M&Ms, Skittles, and Snickers). The deal that would create a snacking colossus is expected to close in early 2025 but is still pending regulatory approval.
Capital One’s Acquisition of Discover Financial: $35.3 Billion (Expected to Close in 2025)
This all-stock deal was announced in February 2024 and is expected to close in 2025, though the deal’s announcement has reportedly spurred an antitrust investigation. The combined company would become the largest credit card issuer in the U.S. by loan volume.
The FTC has not yet stated whether it intends to block the deal, but some Capital One customers have brought a class-action lawsuit in an attempt to block the merger. The deal would potentially reshape the U.S. consumer banking landscape, though it is unclear for now whether the merger would raise costs for consumers.
Capital One has stated that they do not anticipate any branch closures, and they are planning to offer Discover credit card products alongside their existing consumer cards. Additionally, Discover customers would gain access to Capital One’s extensive network of branch locations, cafes, ATMs, and cash-load locations.
Synopsys’ Acquisition of Ansys: $35 Billion (Expected to Close in 2025)
Tech chip design giant Synopsys announced its acquisition of rival Ansys, though the deal is still under antitrust investigation. Leading broker research in the AlphaSense platform referred to it as the biggest software deal of 2024. According to Synopsys, customers are feeling optimistic about the acquisition, as the combined company will be able to drive innovation across industries by addressing the growing need for integrated system design solutions.
Verizon’s Acquisition of Frontier Communications: $19.6 Billion (Expected to Close in Early 2026)
While this deal was announced in September, it will take 18 months to close. There is still an ongoing debate over price, as certain prominent shareholders — like Cerberus Capital Management — are arguing that Verizon is underpaying.
The strategic move will significantly expand Verizon’s fiber network coverage, as well as its delivery of premium broadband services across the US.
Home Depot’s Acquisition of SRS Distribution: $18.25 Billion (Closed in June 2024)
The multinational home improvement retail company acquired SRS Distribution, a roofing supply distributor, which has resulted in the growth of its total addressable market to a whopping $1 trillion. The sale has also brought Home Depot’s share prices up approximately 17% since the deal’s closing.
Home Depot expects the acquisition to accelerate its growth with the residential professional customer and complement existing capabilities to better serve complex project purchase occasions with renovators and remodelers.
Novo Holdings’ Acquisition of Catalent: $16.5 Billion (Closed in December 2024)
Novo Holdings, the parent company of Danish pharma company Novo Nordisk, closed its all-cash deal for Catalent — a drug manufacturer with over 50 global supply sites. This deal will enable Novo Holdings to expand their operations and increase production of their current blockbuster weight-loss drug, Wegovy.
Vertex Pharmaceuticals’ Acquisition of Alpine Immune Sciences: $4.9 Billion (Closed in May 2024)
This deal is an important one for the biotech sector, as it significantly expands Vertex’s reach beyond their current focus on cystic fibrosis treatments into the market for kidney disease therapies. The acquisition is a strategic move by Vertex to expand their portfolio and address a high unmet medical need.
Gilead Sciences’ Acquisition of CymaBay Therapeutics: $4.3 Billion (Closed in March 2024)
CymaBay is a biopharma company that focuses on developing treatments for liver disease. Gilead’s choice to acquire them strengthens their existing liver portfolio and enables them to address a significant unmet need for people living with primary biliary cholangitis (PBC).
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ABOUT THE AUTHOR
Nicole Sheynin
Content Marketing Specialist
Fueled by empathy-driven storytelling and good coffee, Nicole is a content marketing specialist at AlphaSense. Previously, she has managed her own website/blog and has written guest posts for various other publications.
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