The merger and acquisition activity in 2023 was mainly driven by deals made in the technology sector. Two agreements in particular, both valued at $69 billion, enjoyed all the buzz this year.
Microsoft Corp.'s road to acquiring Activision Blizzard was anything but easy. While the initial announcement was made in January 2022, it wasn't until October 2023 that the buyout was finally realized. The tech giant's first hurdle came when the United Kingdom's Competitions and Markets Authority (CMA) launched an investigation in July 2022, raising competition fairness concerns. This was followed by the European Union's probe in November 2022, and the United States Federal Trade Commission's lawsuit to block the deal in December 2022. The pursuit that lasted for over one year and eight months ended positively for Microsoft, with the fiercest opponent, the UK's CMA, finally giving a go-ahead in October 2023.
Broadcom Inc.'s acquisition of VMware Inc. was also targeted by regulators across the globe, as the networking giant was seemingly stuck between the US-China rift. Broadcom announced its intentions in May 2022, however, just like Microsoft, it had to go through a series of challenges before getting a greenlight in November this year.
As can be seen, regulators have been cracking down on tech mergers, and even more rigorous inspections might take place in the future, as data privacy laws are becoming more stringent.
Looking ahead, in 2024, the energy sector could be the main actor, as industry giants try to assess the possibility of turning to different, more eco-friendly sources of energy, following the 28th United Nations Climate Change Conference (COP28), during which all nations formally agreed to move away from fossil fuels. Two big mergers might materialize in 2024, with Chevron Corp.'s proposed Hess Corp. takeover valued at $53 billion, and Exxon Mobil Corp.'s planned acquisition of Pioneer Natural Resources worth $60 billion. Furthermore, while mergers and acquisitions in the tech sector are also expected to continue booming due to the artificial intelligence frenzy, the healthcare industry might also come into the spotlight.
