By the Numbers: 5 Biggest M&A Deals Aided by Big Law in 2023

Despite a slow deals market, there were several bright spots in 2023.

Topping that list are energy deals, which outperformed the rest of the market and leaned on benefits from commodity prices. Healthcare and pharmaceutical deals also sat on top, with companies boasting strong balance sheets from cash infusions during the pandemic.

Overall deals activity fell by more than 14% to $777 billion through the third quarter, compared with the same period last year.

1. Exxon Mobil - Pioneer

In October, Exxon Mobil Corp. announced its all-stock $59.5 billion acquisition of rival Pioneer Natural Resources Co., marking the largest deal put forward this year.

Davis Polk & Wardwell advised ExxonMobil. Gibson, Dunn & Crutcher acted as legal adviser to Pioneer. Fried Frank advised Goldman Sachs as financial adviser to Pioneer.

The deal is expected to close in the first half of 2024, and like other large transactions, it will be subject to regulatory approvals.

2. Chevron - Hess

Chevron Corp. announced its purchase of energy competitor Hess Corp. in an all-stock transaction valued at $53 billion, rounding out the energy industry’s success in a slow deals market.

Paul, Weiss, Rifkind, Wharton & Garrison advised Chevron. Wachtell, Lipton, Rosen & Katz advised Hess.

Chevron also bought Denver-based PDC Energy Inc. earlier this year for $6.3 billion.

3. Pfizer - Seagen

Pfizer Inc. in March announced its plans to acquire cancer-drug maker Seagen Inc. for $43 billion.

Wachtell acted as Pfizer’s legal adviser. Sullivan & Cromwell advised Seagen.

The mega healthcare deal was a product of Pfizer’s generous cash holdings from sales of Covid vaccines and therapies. Pfizer Chief Executive Officer Albert Bourla told analysts last year the company planned to add $25 billion in revenue through dealmaking by 2030. The deal brought Pfizer 85% to 90% of the way to achieve that goal, according to David Lam, a corporate partner at Wachtell.

4. Cisco - Splunk

Cisco Systems Inc. announced its acquisition of Splunk in a deal valued at about $28 billion in September. The deal represents its biggest acquisition yet and a push into software and artificial intelligence-powered data analysis.

Simpson Thacher & Bartlett acted as legal counsel, and Cravath, Swaine & Moore served as regulatory counsel to Cisco. Skadden, Arps, Slate, Meagher & Flom was legal counsel to Splunk.

5. KKR - Telecom Italia

KKR & Co. Inc. agreed to buy phone carrier Telecom Italia for around $24 billion in November. The deal comes amid a slowdown in private equity dealmaking as the cost of borrowing money remains high.

The deal could mark Europe’s largest ever private equity deal. But it comes with its own set of complications. KKR’s offer is contingent on support from the Italian government and the company’s board. Telecom Italia has also been in a state of upheaval. It lost four chief executives in six years, which has hampered decision-making.