Taking a break: Megadeals and imposed divestitures in the Retail and Consumer sector

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

July 2016

Overview

Global M&A value reached a record high in 2015, marking the third consecutive year of steady growth. In line with this record-setting growth, the retail and consumer sector also experienced an uptick in deal value, with 28 deals valued over $5B announced over the past two years. Drivers behind these large transactions include broad market trends such as accelerated urbanization, demographic changes, and shifts in economic power, as well as pressure from shareholder activists. In response, retailers are recognizing the potential to leverage M&A to quickly capitalize on market opportunities. 

However, the proliferation of large deals has brought increased regulatory scrutiny and in response, many companies have agreed to divest assets to appease regulators and competition committees. To close these highly scrutinized deals, companies will often find themselves as not just a buyer, but also a seller, in which they will have to simultaneously manage integration and divestiture activities.

Flexibility, proactive planning, and transparency can help ease the transition and accelerate the separation. Download this article to learn about the operational considerations which can help minimize complexity and accelerate the transition timeline.

Contact us

Jim Smith

Principal, US Leader, M&A Advisory,
PwC's Deals Practice, PwC US

Michael Pokorski

Partner, PwC US

Jeffrey Coseo

Director, Deals Practice, PwC US

Follow us