Mergers and acquisitions (M&A) have always been a critical driver of corporate strategy, but the landscape for deal-making has been anything but steady in recent years. The pandemic brought a temporary halt to activity in early 2020, as companies focused on survival rather than expansion. By the latter half of the year, however, aggressive fiscal and monetary policies revived markets, fueling record-breaking M&A activity in 2020 and 2021. Businesses capitalized on low interest rates and abundant liquidity to pursue strategic acquisitions.

This momentum slowed sharply in 2022 as rising inflation, geopolitical tensions, and higher interest rates made financing less accessible. Deal-making became more cautious, prioritizing operational efficiency over bold expansion. By 2024, with interest rates stabilizing and markets recovering, M&A activity began to pick up again, bringing some of the year’s most significant transactions.

Here’s a closer look at the most notable acquisitions of 2024 and their impact on key industries.

1. Capital One’s Proposed Acquisition of Discover Financial Services

Deal Value: $35.3 billion

Capital One Financial Corporation’s proposed acquisition of Discover Financial Services, announced in February 2024, is one of the most talked-about deals of the year. This all-stock transaction aims to create a powerhouse in the credit card and consumer banking sectors, leveraging Capital One’s robust banking operations alongside Discover’s strong customer base and brand.

Key Highlights:

1. The merger is expected to deliver $2.7 billion in pre-tax cost synergies.
2. The combined entity aims to enhance its competitive position by offering a comprehensive suite of financial services.

However, the deal is not without its challenges. It is currently under review by the Federal Trade Commission (FTC), a key regulatory hurdle. Federal approval is anticipated in early 2025, and the recent re-election of Donald Trump is expected to create a regulatory environment more favorable to mergers.

Market Impact: Capital One’s stock has risen by 38% year-to-date, while Discover has seen a 50% increase, reflecting investor optimism around the potential synergies and value creation this deal could bring.

If you’re a client of either Discover, Capital One, or both, here’s what this might mean for you: 

1. Capital One will gain its own credit card processing network, reducing reliance on third-party systems.
2. During the transition, there may be temporary changes or disruptions in account services as systems are integrated.
3. Discover and Capital One debit and credit cards will continue to function, but clients may eventually see updated terms, benefits, or branding.

2. ExxonMobil’s Acquisition of Pioneer Natural Resources

Deal Value: $59.5 billion

ExxonMobil’s $60 billion acquisition of Pioneer Natural Resources marked the largest energy sector deal of 2024. This strategic move doubled ExxonMobil’s footprint in the Permian Basin, solidifying its position as a leader in U.S. unconventional oil and gas production.

What This Means for ExxonMobil:

1. Pioneer’s expertise and significant acreage complement ExxonMobil’s technological capabilities and financial strength.
2. The acquisition enhances ExxonMobil’s ability to meet long-term energy demands while optimizing production efficiency.

With this acquisition, ExxonMobil has positioned itself as a dominant player in one of the world’s most prolific oil-producing regions, showcasing its commitment to maintaining leadership in energy production.

3. Mars’s Acquisition of Kellanova

Deal Value: $35.9 billion

In a deal that created a snack food giant, Mars completed its $35.9 billion takeover of Kellanova in 2024. The merger combines Mars’s established snack brands with Kellanova’s innovative offerings, setting the stage for a new era of consumer snacking.

Why It Matters:

1. The combined company now commands a significant share of the global snack market.
2. This strategic acquisition strengthens Mars’s position in high-growth product categories, ensuring long-term market relevance.

4. Johnson & Johnson’s Acquisition of Shockwave Medical

Deal Value: $13.1 billion

The largest healthcare deal of 2024 saw Johnson & Johnson acquire Shockwave Medical for $13.1 billion. This acquisition bolstered Johnson & Johnson’s portfolio with cutting-edge technologies for treating cardiovascular diseases.

Key Benefits:

1. Shockwave Medical’s innovative intravascular lithotripsy technology aligns with Johnson & Johnson’s mission to lead in cardiovascular solutions.
2. The deal strengthens J&J’s position in the healthcare industry, particularly in the rapidly growing cardiovascular market.

5. Home Depot’s Acquisition of SRS Distribution

Deal Value: $18.25 billion

Home Depot’s acquisition of SRS Distribution for $18.25 billion was a strategic move to expand its offerings for professional contractors and specialty trade distributors.

What This Means for Home Depot:

1. The deal significantly enhances Home Depot’s capabilities in roofing, landscaping, and pool supplies.
2. It increased Home Depot’s total addressable market by $50 billion, bringing the company closer to a $1 trillion market opportunity.

This acquisition positions Home Depot as a leader in serving the complex needs of professional contractors and specialty trade sectors.

6. BlackRock’s Acquisition of Preqin

Deal Value: $3.2 billion

In July 2024, BlackRock acquired Preqin, a private markets data solutions provider, for $3.2 billion. The deal combines Preqin’s data and research capabilities with BlackRock’s portfolio management platforms, creating a comprehensive solution for fund managers and investors.

Strategic Advantages:

1. The integration of Preqin with BlackRock’s Aladdin and eFront platforms consolidates data, research, and investment processes.
2. This move positions BlackRock as a leader in private markets technology and data solutions.

Market Impact:
The acquisition highlights BlackRock’s commitment to providing cutting-edge tools and insights for private market investors, ensuring its relevance in an increasingly data-driven industry.

Final Thoughts: A Year of Strategic Expansion

2024 has been a landmark year for mergers and acquisitions, with companies across industries leveraging these deals to drive growth and innovation. From ExxonMobil’s dominance in the energy sector to BlackRock’s enhanced data capabilities, each acquisition reflects a strategic response to evolving market demands.

While some deals, like Capital One’s acquisition of Discover, remain under regulatory review, their potential impact is undeniable. These mergers and acquisitions not only reshape industries but also set the stage for long-term growth and value creation in 2025 and beyond.