On Monday, the global financial services giant mercedes announced it would be taking the plunge and selling itself to private equity firm Blackstone.
The deal, the largest in its history, was first reported by Bloomberg and was expected to close this week.
But when the stock fell nearly 10% in early trading, shares in the company’s parent, Mercedes-Benz, plunged as well, hitting $15.90.
While that’s not the kind of decline you see when a company is going public, it was still a significant decline for the stock.
It’s not unheard of for stocks to fall 10% or more in a day or two after a deal is announced, but not like this.
“This is unprecedented,” said Jason Kuzma, a senior investment analyst with Jefferies.
“The only time I have ever seen a merger of the size of this one happen in the last 30 years was with the merger of United Airlines and United Continental.”
Shares of Mercedes-Benzes stock were trading at $11.85 at the time of the news, according to FactSet data.
Blackstone is a private equity company, with a reported net worth of $3.4 billion.
“Mercedes is one of the most iconic brands in the world,” CEO and founder Robert Bosch told Bloomberg News.
“Blackstone will help us create a sustainable and powerful global business that will support the future growth of our brands and drive the evolution of our business.”
A look at how the stock has fallen over the last few years: 2016: Mercedes-Bridgestone stock sank nearly 4% when the company announced it was laying off nearly a million workers.
2017: Mercedes lost almost 7% in the first week of the year as a result of the Brexit vote.
2018: Mercedes’ stock was down 7.5% by early March, when it was down almost 9%.
2019: Mercedes dropped more than 5% in a single day, with its stock plunging more than 20% the day after a meeting with President Donald Trump.
2020: Mercedes was down over 10% before the company was forced to recall about 9 million cars because of a faulty valve.
2021: Mercedes fell more than 10% within 24 hours of the Trump administration declaring the country’s travel ban unconstitutional.
2018 was the year the stock was trading below $10.00 for the first time in over a decade.
2018 saw a significant number of mergers, including the merger with Ford, which closed in September of that year.
2020 was the first year in the past decade that Mercedes had two competitors: General Motors and Nissan.
A year earlier, GM and Nissan were battling it out for a market share of around 20%.
2019 saw a record number of acquisitions.
It was a huge year for companies like Ford and General Motors.
2019 saw Mercedes-BMW acquire Jaguar Land Rover for $1.7 billion.
2020 saw the acquisition of Daimler-Chrysler.
Ford was one of a number of automakers that bought the maker of electric cars, Mercedes Benz.
Mercedes was one among many major U.S. automakers that lost significant market share during the year.
Ford is now the third-largest U.K. car maker, behind only BMW and Volkswagen.
“We are in a position to become a global player,” said Bosch.
“There is a lot more that is possible.”
2021 saw a big fall in shares of Volkswagen, which was down about 25% over the first four months of the new year.
2019 was the same year that GM’s shares dropped 13.5%.
2019 was also the year that General Motors’ shares fell almost 20%.
In a year that saw record global car sales, the impact of the Great Recession was felt far more than in years past.
“Volkswagen was the worst-performing company in the U. S. for the second consecutive year,” said Kuzya.
“In 2019, Volkswagen had a market capitalization of $16.4 trillion, but in 2020, its market cap dropped to $11 trillion.”
2018 saw the company close out the year by cutting jobs and eliminating jobs altogether.
2018 brought about a big drop in the value of the company, and it was the biggest decline in the S&P 500 since 2008.
“I don’t think there’s ever been a year in our history where the S+P 500 has fallen more than 9%,” said David Reiff, a corporate finance professor at New York University.
“That’s an extraordinary amount of capital loss, and that is the kind that the markets are going to look at.”
It was the third time in the history of the S=P 500 that a company was down more than 50%.
2017 saw a huge decline in shares in General Motors, which saw its market value fall by over 60%.
2017 was also a year where Ford was on a tear.
In the year, Ford saw its share price drop more than 25%.
2016 saw a drop of almost a third in the stock of