This post was originally published on December 20, 2020, and updated for relevance on August 13th, 2024.

Mergers and acquisitions are seeing a rise in 2024 after a stretch of uncertainty. Over the past few years, deal-making took a massive hit, all thanks to geopolitical tensions, economic fluctuations, and the lingering effects of the pandemic.

Companies are shifting gears, and we are starting to see a real comeback across the market. Businesses across industries like healthcare, technology, and financial services are returning to the game, increasing their M&A activity to grow, innovate, and stay competitive in an ever-changing market. Additionally, we are witnessing a new era of deal activity resulting from new technologies, more access to capital, and enhanced deal sourcing.

This blog will explore the most significant and upcoming M&A deals of 2024 and major mergers or acquisitions that have already made waves this year.

1. ConocoPhillips Acquisition of Marathon Oil

• Projected Date: Q4 2024
• Value: $22.5 billion
• Industry: Energy

This deal between ConocoPhillips and Marathon Oil is set to become one of the largest M&A deals in 2024. With oil prices remaining high, ConocoPhillips plans to secure more assets in the Permian Basin, a critical region for U.S. oil production. Given both companies' solid financial positions and strategic fit, this deal will likely go through.

Significant operational synergies are expected to allow ConocoPhillips to seamlessly integrate Marathon Oil’s assets into its existing operations. This would eventually benefit the combined entity through enhanced efficiency and a more assertive position in the energy sector.

2. Swisscom Acquisition of Vodafone Italia

• Projected Date: Q1 2025
• Value: $8.6 billion
• Industry: Telecommunications

Swisscom’s plan to acquire Vodafone Italia is among the most talked-about acquisitions in the European telecom market. They’ll create Italy’s second-largest broadband operator by merging Vodafone Italia with Fastweb, a Swisscom subsidiary. Although the rationale behind the merger is quite substantial, the likelihood of this deal being completed is moderate, given Europe's expected regulatory scrutiny.

If this deal goes through, Swisscom will significantly expand its footprint in Italy, and the combined entity will have a stronger competitive position in the market. Both would benefit from the increased scale and cost efficiency, making them formidable players in the European telecommunications market.

3. Permira Acquisition of Squarespace

• Projected Date: Q4 2024
• Value: $6.9 billion
• Industry: Tech

In this all-cash deal, Private equity firm(PE firm) Permira is set to take Squarespace private by capitalizing on the current valuations within the tech sector. Given the strategic benefits of Squarespace and Permira’s strong financial backing, this deal will likely close. This is one of the broader trends in which a private equity firm seizes the opportunity in the tech sector.

Further, this acquisition is expected to provide Squarespace with the much-needed flexibility to innovate and grow without the pressures of the public market. This, in turn, would enhance its ability to play in the crowded digital platform space, leveraging new technologies and keeping its focus on long-term growth.

4. CPP Investments & GIP Acquisition of Allete

• Projected Date: Q2 2025
• Value: $6.2 billion
• Industry: Energy

Allete’s acquisition by CPP Investments and Global Infrastructure Partners (GIP) is a highly-anticipated move for the energy sector, reflecting a shifted focus on investments in renewable energy and its infrastructure. The likelihood of the deal’s closure is high, given that it is driven by two major investment firms with strong financial positions.

By taking Allete private,  CPP Investments and GIP can provide the capital needed for the company to expand its portfolio, particularly in sustainable energy projects.

5. T-Mobile Acquisition of US Cellular

• Projected Date: Q2 2025
• Value: $4.4 billion
• Industry: Telecommunications

T-Mobile's acquisition of a significant portion of US Cellular's wireless spectrum is a smart move to enhance its network coverage, specifically for geographically isolated areas in the U.S. Though we expect some regulatory scrutiny, the likelihood of a final deal is moderate to high.

If this transaction goes through, it will further consolidate the U.S. telecommunications market, giving T-Mobile a more decisive, competitive edge against other major providers like AT&T and Verizon.

6. Capital One Financial Corporation's Acquisition of Discover Financial Services

• Deal Value: $35 billion
• Date Closed: Late 2024 - Early 2025
• Industry: Financial Services

One of the more noteworthy financial moves is Capital One's upcoming acquisition of Discover Financial Services. This all-stock transaction will establish another dominating force in the credit card and consumer banking markets. With Capital One leveraging Discover’s robust brand presence and customer base to enhance its offerings, this transaction can create compelling cost synergies. Through this merger, both entities anticipate delivering increased value to shareholders and offering more comprehensive financial services to a broader customer base.

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7. Synopsys' Acquisition of ANSYS

• Deal Value: $35 billion
• Date Closed: Q1 2025
• Industry: Technology

Synopsys' upcoming acquisition of ANSYS is a major move in the tech world, consolidating its leadership in the software and semiconductor industry. The transaction has the potential to combine two of the most innovative companies in the simulation software market, enhancing Synopsys' capabilities in artificial intelligence (AI) and machine learning applications. The acquisition is expected to drive growth and innovation, positioning Synopsys at the forefront of the tech industry's next wave of development.

8. Hewlett Packard Enterprise's Acquisition of Juniper Networks

• Deal Value: $14 billion
• Date Closed: Late 2024 - Early 2025
• Industry: Technology

Hewlett Packard Enterprise’s (HPE) upcoming $14 billion acquisition of Juniper Networks is a notable play for the tech industry. HPE's ambition here can strengthen its position in the market and boost its technological capabilities, particularly in areas like cloud services and advanced computing. This potential acquisition highlights a consolidation trend in the tech sector as companies seek to enhance their product portfolios and boost market expansion efforts in a competitive environment.

1. Home Depot's Purchase of SRS Distribution

• Deal Value: $18.3 billion
• Date Closed: March 28, 2024
• Industry: Retail

Home Depot's acquisition of SRS Distribution, a leading roofing materials and building product distributor, is a calculated tactic to expand its footprint in the construction supply industry. The acquisition, which resulted in a $18.3 billion deal, is expected to enhance Home Depot's supply chain and product offerings. The deal allows Home Depot to tap into SRS's strong contractor and builder relationships,  further solidifying its position as a dominant home improvement and construction market player.

2. Diamondback Energy's Merger with Endeavor Energy Partners

• Deal Value: $26 billion
• Date Closed: July 18, 2024
• Industry: Energy

Diamondback Energy completed a merger with Endeavor Energy Partners, valued at $26 billion. This is one of this year's largest megadeals, as it consolidates the company’s position in the U.S. energy sector. The transaction expands Diamondback's assets in the Permian Basin and is expected to enhance operational efficiencies and increase production capacity, making Diamondback a leading player in the energy market.

3. Johnson & Johnson's Acquisition of Shockwave Medical

• Deal Value: $17 billion
• Date Closed: May 31, 2024
• Industry: Healthcare

A considerable expansion of the healthcare industry was seen when Johnson & Johnson acquired Shockwave Medical, valued at $17 billion. Shockwave Medical, known for its innovative intravascular lithotripsy (IVL) technology for treating complex cardiovascular conditions, complements Johnson & Johnson's existing medical device offerings. The deal is expected to drive significant growth for Johnson & Johnson by leveraging Shockwave’s cutting-edge technology. Additionally, this acquisition shows how vital players like Johnson & Johnson seek to enhance their product portfolios and maintain a competitive edge in a rapidly evolving market.

4. Roark Capital's Acquisition of Subway

• Deal Value: $9.6 billion
• Date Closed: August 24, 2024
• Industry: Food & Beverage

Roark Capital’s $9.6 billion acquisition of Subway is a strategic move. Roark Capital has capitalized on this M&A opportunity to strengthen its portfolio amid volatile stock markets and fluctuating interest rates. With a focus on revitalizing Subway’s global presence and improving operational efficiencies, Roark is set to drive growth in the brand despite ongoing macroeconomic challenges. This acquisition shows the continued trend of private equity firms successfully leveraging M&A to expand their influence in critical industries.

5. Honeywell's acquisition of Carrier Global

• Deal Value: $18.6 billion
• Date Closed: September 10, 2024
• Industry: Industrial & Manufacturing

Honeywell's $18.6 billion acquisition of Carrier Global represents a significant consolidation in the industrial and manufacturing sector. This merger enhances Honeywell’s position in the heating, ventilation, and air conditioning (HVAC) market, where Carrier is already a key player. The acquisition highlights Honeywell's commitment to strengthening its core business and improving operational efficiency and profitability. The strategy also indicates the broader trend of large-scale mergers and acquisitions reshaping the industrial landscape in response to technological advancement and evolving market demands.

Final Thoughts

The 2024 M&A landscape is reviving, with deal volume increasing across various sectors. This resurgence isn’t limited to America; Europe is also witnessing substantial M&A activity, as seen with Swisscom’s planned acquisition of Vodafone Italia. Despite recent years' headwinds, including economic uncertainties, regulatory scrutiny, and geopolitical challenges, companies are now capitalizing on strategic opportunities for growth and synergy.

We can also see how Investment banking firms play a critical role in navigating these complex transactions, ensuring companies can overcome regulatory hurdles and achieve their strategic goals. Last year’s slowdown in dealmaking appears to be behind us, as this year’s robust activity indicates a more optimistic outlook for the M&A market.