Merger

Mergers & Acquisitions in Food and Beverage

Global Consumer M&A had a strong first half to the year, with transactions valued at US$ 202.5bn topping every H1 deal value since 2008 and representing a 42.8% uptick in deal value compared to H1 2014. The increase stemmed from two domestic mega-deals, together accounting for 47.1% of total deal value: HJ Heinz’s US$ 54.5bn acquisition of Kraft within the US food sector and Cheung Kong Holdings US$40.8bn acquisition of CKH & Hutchison Whampoa within Hong Kong’s retail sector. As a result, the Consumer sub-sectors food (US$ 80.2bn) and retail (US$ 105bn) saw an increase in deal value by 129.9% and 106.9% respectively compared to H1 2014 (food worth US$ 34.9bn; retail worth US$ 50.8bn). Food deal value reached its highest H1 deal value since 2007, whilst retail reached its highest H1 deal value on Mergermarket record.

Water should be high on the agenda of corporates because the future of businesses depends on the sustainability of water resources, which are increasingly under pressure. Clear implications of a water-constrained world include loss of license to operate, increased production costs, tainted brand image and adverse impact on the health of employees and the communities of operations. Despite clear signs of a pending global crisis, only a few large corporates have made addressing the challenge a high priority.