Special Report

20 Corporate Mega-Mergers of 2019

10. Schwab acquires TD Ameritrade
> Deal value: $26 billion

This deal combines two of America’s largest discount brokers. The acquisition was announced Nov. 25. The boards of directors of both companies have approved the transaction. In theory, the marriage will allow Schwab and TD Ameritrade to combine back-office and management functions to save money.

9. IBM-Red Hat merger
> Deal value: $34 billion

Troubled tech giant IBM has struggled with a multiyear revenue decline. Management and the board decided that buying a related company would help. On July 9, IBM closed its buyout of open source software giant Red Hat. After the deal, IBM’s shares continued to languish.

Source: Courtesy of Fidelity National Information Services Inc.

8. Fidelity National Information Services acquires Worldpay
> Deal value: $35 billion

Financial technology company Fidelity National Information Services (FIS) handles credit card processing and payment services. Financial technology company Fidelity National Information Services (FIS) handles credit card processing and payment services. Worldpay offers payment systems for businesses and consumer payment and transfer processes. The CEO of FIS said the acquisition of Worldpay was important because “scale matters.” The deal was announced on March 18.

7. Occidental Petroleum acquisition of Anadarko
> Deal value: $57 billion

Following a short, but intense bidding war with Chevron, Occidental Petroleum made Anadarko an offer it could not refuse: $57 billion, half in cash and the rest in stock. With that, Chevron’s offer of $33 billion in cash and stock was quickly forgotten. Warren Buffett Berkshire Hathaway helped bankroll the deal with a $10 billion investment in Oxy.

6. BB&T merger with SunTrust
> Deal value: $66 billion

The combination of these financial firms, announced in February, would create the country’s sixth largest bank. As is often the case, one of the primary reasons for the deal is cost reduction. The banks estimate the merger would help chop annual expenses by $1.6 billion.

The new company will still be dwarfed by Bank of America and JP Morgan Chase, but it will have a large market share in the southeastern part of the U.S. Management says the deal will have an immediately positive effect on earnings. The new company will be called Truist.

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