WikiLeaks Document Release http://wikileaks.org/wiki/CRS-RS21147 February 2, 2009 Congressional Research Service Report RS21147 Largest Mergers and Acquisitions by Corporations: 2002 John Williamson, Resources, Science and Industry Division January 3, 2003 Abstract. The worldwide rate of corporate mergers and acquisitions activity declined during 2001, but 2002 could well be a year of serious consolidation as corporations seek to restructure their operations through buying and selling on non-essential operations. This report provides a listing of the largest mergers or acquisitions for January 1, 2002 to April 30, 2002. Completion dates for the mergers or acquisitions are included and merger or acquisition failures noted. Order Code RS21147 Updated January 3, 2003 Largest Mergers and Acquisitions by Corporations: 2002 John Williamson Technical Information Specialist Resources, Science, and Industry Division Summary http://wikileaks.org/wiki/CRS-RS21147 The worldwide rate of corporate mergers and acquisitions (M&A) activity declined during 2001, and 2002 was a year of serious consolidation as corporations sought to restructure their operations through buying and selling of "non-essential" operations.1 This report provides a listing of the largest mergers (announced value of at least two billion U.S. Dollars) or acquisitions for the year January 1, 2002 to December 31, 2002. Completion dates for the mergers or acquisitions are included and merger or acquisition failures noted. These data have been drawn from publicly available sources and have not been otherwise verified by CRS. Largest Mergers or Acquisitions: 2002 (ranked by value) (All amounts cited are U.S. Dollars) Acquirer, Sector, and Target Firm Date Date Value New Name (if applicable) and Sector Announced Completed ($ billions) * The designation "Pending" often indicates that regulatory approval needed for actual merger has not been obtained. Meiji Life Yasuda Mutual Life Insurance 1/24/02 April 2004 206.04 Mutual insurance company Mutual insurance company (projected) Pfizer, Inc. Pharmacia Corp. 7/15/02 Pending* 52.16 Pharmaceuticals Pharmaceuticals Taishin Financial Holding Co. Shin Kong Financial Holding Co. 6/25/02 Pending* 29.743 Banking and finance Banking and finance For the top 25 mergers of 1998, see RS20502, Twenty-five Largest Mergers and Acquisitions by Corporations: 1998; for the top 25 mergers of 1999, see RS20503, Twenty-five Largest Mergers and Acquisitions by Corporations: 1999; for the top 25 mergers of 2000, see RS20504, Twenty-five Largest Mergers and Acquisitions by Corporations: 2000; and for the top 25 mergers of 2001, see RS20804, Twenty-five Largest Mergers and Acquisitions by Corporations: 2001. 1 Ratner, Juliana. "The nightmare on Wall Street continues MERGERS & ACQUISITIONS BAD YEAR FOR BANKERS, GOOD YEAR FOR BUYOUTS: * DEBT MARKETS HOLD UP WELL: * RESTRUCTURING EXPERTS IN DRIVING SEAT" Financial Times, December 23, 2002. p. 23. CRS-2 Acquirer, Sector, and Target Firm Date Date Value New Name (if applicable) and Sector Announced Completed ($ billions) * The designation "Pending" often indicates that regulatory approval needed for actual merger has not been obtained. Crédit Agricole Crédit Lyonnais 12/16/02 Pending* 20.04 Banking and finance Banking and finance National Grid Group Plc Lattice Group Plc 4/22/02 10/21/02 17.93 Electric Power distribution Natural Gas pipeline company National Grid Transco Plc. Telia AB Sonera Corporation Oyj 3/26/02 12/9/02 17.54 Telecommunications Telecommunications TeliaSonera HSBC Household International 11/14/02 Pending* 14.24 Banking and finance Banking and finance PanCanadian Energy Alberta Energy 1/27/02 4/8/02 12.04 Energy company Energy company EnCana Corporation Northrop Grumman Inc. TRW Inc. 2/22/02 12/11/02 11.84 http://wikileaks.org/wiki/CRS-RS21147 Defense conglomerate Conglomerate J.P. Morgan, Chase & Co. Providian Financial's Credit card 1/17/02 1/17/02 8.24 Banking and finance business South African Breweries Plc Miller Brewing Company 4/3/02 7/9/02 7.63 Brewing Brewing SAB Miller Plc Carnival Corp. P&O Princess Cruises Ltd. 10/25/02 Pending* 7.36 Cruise line operator Cruise line operator Carlyle Group QwestDex (div. Qwest Inc.) 8/20/02 11/8/02 7.057 Welch Carson Anderson & Telephone directory publisher Stowe Investors Royal Dutch Shell Enterprise Oil Plc 4/2/02 5/10/02 6.2 Oil Oil Vodafone Plc Cegetel S.A. 10/16/02 Pending* 6.195 Telecommunications Telecommunications Simon Property Group, Inc. Rodamco North America N.V. 1/14/02 5/3/02 5.83 Rouse Company Shopping center owner/ Westfield Holdings Ltd. operator Shopping center owners/ operators Citigroup Golden State Bancorp 5/22/02 11/7/02 5.84 Banking, finance, insurance Banking and finance Blackstone Group TRW Inc. Auto parts div. 11/19/02 Pending* 4.736 Investment group Conglomerate Imperial Tobacco Plc Reemtsma Cigarettenfabriken 3/7/02 3/7/02 4.564 Tobacco GmbH Tobacco USA Interactive Ticketmaster Inc. 6/3/02 10/9/02 4.53 E-commerce E-commerce Anthem Inc. Trigon Healthcare Inc. 4/29/02 7/31/02 4.45 Health services provider Health services provider Cadbury, Schweppes Plc AdamsDiv., Pfizer, Inc. 12/17/02 Pending* 4.24 Soft drinks, confectionary Confectionary CRS-3 Acquirer, Sector, and Target Firm Date Date Value New Name (if applicable) and Sector Announced Completed ($ billions) * The designation "Pending" often indicates that regulatory approval needed for actual merger has not been obtained. Friedman, Billings Ramsey FBR Asset Investment 11/15/02 Pending* 4.12 Group (FBR Group) Real estate investment trust Holding company Manulife Financial Corp. Canada Life Financial Corp. 12/9/02 Pending* 4.16 Insurance company Insurance company AOL TimeWarner, Inc. TimeWarner Entertainment (27.6%) 8/21/02 Pending* 3.76 Conglomerate held by AT&T Comcast TimeWarner Cable Inc. Cable television networks New part owned subsidiary Coca-Cola Femsa S.A. Panamerican Beverages Inc. 12/23/02 Pending* 3.64 Beverage bottler Beverage bottler Wendel Investissement LeGrand S.A. 7/28/02 Pending* 3.583 Kohlberg Kravis Roberts Electrical parts Investment partnership http://wikileaks.org/wiki/CRS-RS21147 Univision Communications Inc. Hispanic Broadcasting Corp. 6/12/02 Pending* 3.56 Spanish language broadcaster Spanish language broadcaster Madison Dearborn Partners Jefferson Smurfit Plc. 6/17/02 9/3/02 3.53 Investment group Paper packaging manufacturer IBM PriceWaterhouseCoopers 7/30/02 10/1/02 3.56 Information company Consulting Consultant Southern Cross Airports Corp. Sydney Airport Corp. 6/25/02 6/25/02 3.22 Airport operator Airport operator M&T Bank Allfirst Bank 9/26/02 Pending* 3.16 Banking and finance Banking and finance BP Plc Veba Oel (49% not previously 5/28/02 10/2/02 3.054 Energy purchased) Oil company Publicis S.A. BCom3 3/7/02 9/25/02 3.04 Advertising Advertising Guidant Corp. Cook Group, Inc. 7/30/02 Pending* 3.06 Medical device manufacturer Medical device manufacturer Royal Dutch Shell Pennzoil-Quaker State Oil Company 3/25/02 10/1/02 2.94 Oil Oil General Electric Co. Deutsche Bank A.G. 9/16/02 Pending* 2.96 Conglomerate U.S. financing unit Banking and finance Norsk Hydro (44% owned by VAW Aluminum AG (owned by E. 1/7/02 3/12/02 2.83 Norwegian government) On AG) Hydro Aluminum Bertelsmann A.G. Zomba Music Group 6/11/02 11/26/02 2.746 Communications Recorded music producer Del Monte Foods Co. H.J. Heinz Co. North American 6/13/02 12/20/02 2.72 Food food division Food Deutsche Bahn A.G. Stinnes A.G. 7/3/02 10/18/02 2.74 Government-owned railway Transportation company CRS-4 Acquirer, Sector, and Target Firm Date Date Value New Name (if applicable) and Sector Announced Completed ($ billions) * The designation "Pending" often indicates that regulatory approval needed for actual merger has not been obtained. Nestle S.A. Chef America Inc. 8/6/02 9/12/02 2.63 Conglomerate Food Xstrata AG Glencore International coal fields 2/21/02 3/20/02 2.54 Minerals company Commodity trader Cisco Systems Inc. Andiamo Systems 8/20/02 Pending* 2.54 Networking router maker Storage area networking switchmaker David Murdock Dole Food, Inc. 9/23/02 Pending* 2.54 Investor Food company E.ON A.G. TXU U.K. operations 10/21/02 10/21/02 2.56 Energy Energy Crédit Agricole Finaref 12/23/02 Pending* 2.52 Banking and finance Software manufacturer Nestle S.A. Dreyer's Grand Ice Cream, Inc. 6/17/02 Pending* 2.45 http://wikileaks.org/wiki/CRS-RS21147 Conglomerate Ice cream maker Barilla Group Kamps A.G. 4/15/02 9/25/02 2.32 Food Food Gecina S.A. Simco S.A. 8/7/02 10/2/02 2.32 Real estate Real estate General Electric Co. ABB Ltd. financing division 9/4/02 11/29/02 2.36 Conglomerate Conglomerate R.H. Donnelly Co. Sprint Inc., directory div. 9/22/02 Pending* 2.234 Directory sales representative Directories DSM N.V. Roche S.A. 9/3/02 Pending* 2.214 Conglomerate Pharmaceuticals America Movil S.A. Telecom Americas S.A. 6/10/02 7/24/02 2.24 Telecommunications Telecommunications General Electric Co. Inc. Instrumentarium Corp. Oy 12/18/02 Pending* 2.22 Conglomerate Medical technology Electricité de France, S.A. Seeboard div. AEP Corp. 6/18/02 6/18/02 2.15 Power company Power company IBM Rational Software 12/5/02 Pending* 2.14 IT company Software company Hitachi KK IBM, hard disk drive division 6/04/02 12/31/02 2.053 Conglomerate IT company Petro-Canada Veba oil fields (owned by BP plc) 1/30/02 5/2/02 2.04 Oil company Oil Company Scottish & Newcastle Plc Hartwall Oyj 2/14/02 7/3/02 2.04 Brewers Brewers Saudi Basic Industries Petrochemical div. DSM N.V. 4/4/02 6/30/02 2.04 Petrochemicals Conglomerate Note: Values given for transactions are expressed as the value of the combined assets of the two firms when there is a merger. In an acquisition, the value shown is the purchase price of the target corporation. These figures sometimes vary from one source to another and can change as the market value of the company's stock changes; values are shown in U.S. Dollars. U.S. Dollar value can fluctuate with changes in exchange rates. The values shown above are derived from the following sources: CRS-5 1 Source for value: Mergers & Acquisitions. 2 Source for value: Mergerstat. 3 Source for value: The Wall Street Journal. 4 Source for value: The Financial Times. 5 Source for value: The Washington Post. 6 Source for value: bloomberg.com 7 Source for value: forbes.com Sources: Mergerstat Online (http://www.mergerstat.com); Mergers & Acquisitions Magazine, various issues; The Wall Street Journal, various dates; The Financial Times, various dates; announcement and closing dates from The Wall Street Journal or The Financial Times, various dates. http://wikileaks.org/wiki/CRS-RS21147