Mondelez International Inc.’s potential acquisition of Hershey Co. could be the largest merger and acquisition (M&A) deal of 2024, exceeding $44 billion including debt. This potential transaction highlights a resurgence in global M&A activity, particularly in the consumer sector.
Global M&A volume has already reached $3.1 trillion in 2024, marking an 18% year-over-year increase. A successful Mondelez-Hershey deal would surpass Mars Inc.’s acquisition of Kellanova, currently the year’s biggest deal. This underscores a broader trend of megadeals across various sectors, including software, energy, and media.
Consumer transactions have represented nearly 20% of total deal volume in 2024, a significant increase from previous years. This surge reflects a robust appetite for consolidation and growth in the consumer goods market. Beyond the potential Mondelez-Hershey deal, other significant transactions within the consumer space contribute to this trend.
Financial services are also experiencing a surge in M&A activity. BlackRock Inc.’s $12 billion acquisition of HPS Investment Partners exemplifies this trend. Man Group Plc, the world’s largest publicly traded hedge fund, has expressed interest in further acquisitions, citing promising opportunities in the rapidly expanding credit market. Prudential Plc is also exploring strategic options for its Asian asset management arm, Eastspring Investments.
Private equity firms remain key players in the M&A landscape. A consortium, including Starwood Capital Group, Sixth Street Partners, and others, recently offered a $7 billion takeover bid for ESR Group Ltd., an Asian warehouse operator. This illustrates the continued interest of private equity in acquiring established businesses across diverse industries.
Additionally, Topcon Corp., a Japanese eye-care equipment manufacturer, has attracted interest from potential acquirers like KKR & Co. and EQT AB. Carlyle Group Inc.’s $720 million sale of software firm 1E to TeamViewer SE and CVC Capital Partners Plc’s $1.2 billion offer for CompuGroup Medical SE further demonstrate the dynamic M&A environment.
In conclusion, the potential Mondelez-Hershey deal symbolizes a vibrant global M&A market in 2024. Increased deal volume, particularly in the consumer and financial services sectors, coupled with active private equity participation, points to a sustained trend of corporate consolidation and strategic acquisitions. The outcome of the Mondelez-Hershey pursuit will significantly impact the M&A landscape and could set the stage for future large-scale transactions.
