High-value mergers among global or domestic business corporations have always attracted attention and spawned case studies as they have interesting implications for business development. A well-executed merger allows for higher returns for investors in the form of higher shareholder value, reduced operational costs for corporations, and increased revenue and sales.

America Online and Time Warner

The largest merger in history took place in 2000 when America Online (AOL) merged with Time Warner Inc. (TWX) in a deal worth a staggering $360 billion. At the time, AOL was the largest Internet provider in the U.S. Riding high on its success and the massive market share that it had across the American households, AOL decided to merge with Time Warner, the mass media and entertainment conglomerate. The vision was that the new entity, AOL Time Warner, would become a dominant force in the news, publishing, music, entertainment, cable, and Internet industries.

Dow Chemical and DuPont

Announced in 2015 and completed in 2017, the $130 billion mega-merger of equals was executed to create highly focused businesses in agriculture, material science, and speciality products.3 The merger was expected to deliver around $3 billion in cost synergies and another $1 billion in expected upside from growth synergies from the merged entities. The combined company is operating as a holding company under the name DowDuPont Inc.

Anheuser-Busch InBev and SABMiller

The merger deal between the world’s two largest brewers, Anheuser-Busch InBev and SABMiller, was worth $104.3 billion and was executed in 2016.56 London-listed SABMiller agreed to merge with Belgium-based Anheuser-Busch InBev, and the deal combined SABMiller’s Castle Lager with InBev’s Budweiser, Stella Artois, and Corona brands with an aim to take them into fast-growing African and Latin American markets.7

H. J. Heinz and Kraft Foods

The $100 billion merger of H. J. Heinz Co. and The Kraft Foods Group was aimed to create a U.S. food giant and the fifth-largest food and drink company in the world.9 The deal was announced in 2015 and created a newly merged entity with the name The Kraft Heinz Company. It brought leading household food brands, like Philadelphia, Capri Sun, and Heinz Ketchup and HP sauce, under one roof.

Exxon and Mobil

In November 1999, oil powerhouses Exxon Corp. and Mobil Corp. secured approval from the Federal Trade Commission (FTC) to complete their $81 billion merger. Exxon was then the industry leader, while Mobil was number two in the field.11 The merger required extensive restructuring for the joint entity, which included a sell-off of more than 2,400 stations of the two companies spread across the United States.