Merger Breakups Increase to Record -- WSJ

By Stephen Grocer 

For deal makers, 2016 is set to be another record year, just not the type of record anyone wants.

Last week Halliburton Co. and Baker Hughes Inc. called off their nearly $35 billion deal after facing resistance from regulators. The transaction's failure brought the value of withdrawn U.S. deals to $378 billion. That is not only the highest level year to date for U.S. withdrawn deals, it is the highest total for a full year, according to Dealogic.

World-wide buyers have canceled $489 billion of deals so far this year, according to Dealogic, the second highest year-to-date level since the $505 billion in 2007.

The failure of the Halliburton-Baker Hughes deal comes after Pfizer Inc. called off its $150 billion tie-up with Allergan PLC after the Treasury introduced new rules further curbing inversions. Other deals were abandoned for more traditional reasons: Honeywell International Inc. and Canadian Pacific Railway Ltd. dropped unsolicited bids to buy United Technologies Corp. and Norfolk Southern Corp., while China's Anbang Insurance Group Co. walked away from a $14 billion proposal to buy Starwood Hotels & Resorts Worldwide Inc.

The stream of withdrawn deals is likely to continue. There are a number of large deals that face hurdles to closing. Just last week Energy Transfer Equity LP Chief Executive Kelcy Warren told investors his company's proposed $32 billion takeover of Williams Cos. can't go forward as is.

There are also $114 billion in unsolicited or hostile bids that are still pending, according to Dealogic.

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Stephen Grocer

(END) Dow Jones Newswires

May 09, 2016 02:47 ET (06:47 GMT)

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