January's $10B M&A deals and bids span sectors

A US power plant operator and a pharmaceutical company were among the M&A targets in transactions valued at more than $10 billion that were announced in January.

There were four potential $10 billion-plus transactions initiated worldwide in January, excluding terminated bids, according to S&P Global Market Intelligence data. That fell just short of the three-month totals recorded in the second and third quarters of 2024. There were 10 announced deals of $10 billion or more in the fourth quarter of 2024.

The January megadeals included transactions in the energy, financials and pharmaceuticals sectors, signaling a broad-based large-cap M&A market appetite.

Announced deals

On Jan. 10, renewable electricity company Constellation Energy Generation LLC agreed to acquire power plant operator Calpine Corp. in a transaction valued at $29.39 billion at the time of the announcement. A few days later, pharmaceutical giant Johnson & Johnson and biopharmaceutical company Intra-Cellular Therapies Inc. signed a definitive agreement confirming Johnson & Johnson's proposed $13.65 billion purchase of Intra-Cellular Therapies on Jan. 13.

The combination of Constellation Energy Generation and Calpine Corp. would create the US's largest clean energy provider, according to the merger announcement. The deal adds geographic diversity to Maryland-based Constellation Energy Generation's coverage by bringing Texas-based Calpine Corp.'s customers under its umbrella.

Johnson & Johnson's acquisition of Intra-Cellular Therapies, which focuses on the development and commercialization of therapeutics for central nervous system disorders, demonstrates the company's commitment to research on neuropsychiatric and neurodegenerative disorders, Chairman and CEO Joaquin Duato said in Johnson & Johnson's press release announcing the deal.

– View transaction statistics across all sectors. – Read the M&A and equity offerings research paper. – Read more about investment banking news.

Placed bids

Multiple potential acquirers placed large bids during the month of January. Software company QXO Inc. offered to acquire materials distribution company Beacon Roofing Supply Inc. in a tender offer with an implied transaction value of $11.55 billion at the time of announcement on Jan. 15. Italian bank Banca Monte dei Paschi di Siena SpA submitted a $13.73 billion all-stock takeover offer to its peer Mediobanca Banca di Credito Finanziario SpA on Jan. 24. Both bids were rejected by the targets' boards.

QXO commenced a tender offer to purchase all outstanding Beacon Roofing Supply shares for $124.25 per share in cash. Beacon Roofing Supply confirmed the receipt of the offer Nov. 11, 2024, and rejected it. The board stated in a press release that QXO's bid severely undervalued Beacon Roofing Supply for growth and future value creation.

QXO responded with a letter to Beacon Roofing Supply on Feb. 10, stating the bid represents a 37% premium to Beacon Roofing Supply's 90-day unaffected share price of $91.02 per share as of Nov. 15, 2024.

Monte dei Paschi's bid to purchase Mediobanca comes amid a pickup in bank M&A in Italy. The Italian government backed the bid, with both the country's prime minister, Giorgia Meloni, and Economy Minister Giancarlo Giorgetti saying it would strengthen Italy's economy and banking system. Mediobanca's board rejected Monte dei Paschi's bid on Jan. 28, stating in a press release that the board found the offer "devoid of industrial and financial rationale and ... therefore destructive."

If the proposed purchase was successful, it would be the largest Italian bank deal of the decade, according to S&P Global Market Intelligence.