Major M&A Activity Continues with $26B Energy Deal, $22.5B Oil Merger Pending
The mergers and acquisitions landscape has seen significant activity in 2024 and early 2025, with energy sector consolidation leading several major transactions worth billions of dollars.
Energy Sector Drives Mega-Deals
Diamondback Energy completed one of 2024's largest transactions with its $26 billion merger with Endeavor Energy Partners [Reuters]. The deal consolidates Diamondback's position in the U.S. energy sector by expanding its assets in the Permian Basin and is expected to enhance operational efficiencies while increasing production capacity.
The energy consolidation wave continues into 2025, with ConocoPhillips set to acquire Marathon Oil in a $22.5 billion deal [Fast Company]. This transaction represents another major consolidation move in the U.S. oil and gas industry, which has experienced significant merger activity over the past two years.
Healthcare and Retail Round Out 2024's Major Deals
Beyond energy, 2024 saw substantial activity across multiple sectors. Johnson & Johnson completed its acquisition of Shockwave Medical for $17 billion on May 31, 2024, strengthening its healthcare portfolio [Dealroom]. Home Depot also made a significant move with its $18.3 billion purchase of SRS Distribution, which closed on March 28, 2024 [Dealroom].
Other notable 2024 transactions included Roark Capital's acquisition of Subway and Honeywell's acquisition of Carrier Global, though specific deal values for these transactions were not disclosed in the research materials.
2025 Pipeline Shows Continued Activity
Several major deals are expected to close in 2025 beyond the ConocoPhillips-Marathon Oil transaction. Swisscom is acquiring Vodafone Italia for $8.6 billion in the telecommunications sector, while private equity firm Permira is purchasing technology company Squarespace for $6.9 billion [Dealroom].
The renewable energy sector is also seeing activity, with CPP Investments and GIP acquiring Allete for $6.2 billion. T-Mobile's acquisition of US Cellular assets, valued at $4.4 billion, represents another significant telecommunications consolidation [Dealroom].
Recent Market Activity
Recent market headlines indicate continued deal-making momentum. Merck is reportedly in talks to acquire Revolution Medicines for approximately $30 billion [Seeking Alpha]. Other notable recent transactions include Eli Lilly's agreement to buy Ventyx Biosciences for $14 per share and various smaller acquisitions across technology and healthcare sectors.
The sustained M&A activity across energy, healthcare, telecommunications, and technology sectors suggests companies continue to pursue growth through strategic acquisitions despite broader economic uncertainties. Energy sector consolidation, in particular, appears to be driven by operational efficiency goals and market positioning strategies in key production regions like the Permian Basin.
Analysts expect this consolidation trend to continue as companies seek to achieve scale advantages and operational synergies in an increasingly competitive market environment.