Failed M&A Deals (2023–2025): Data-Driven Insights on Collapsed Mega-Mergers

When billion-dollar mergers collapse, they leave behind scorched stock prices, hefty breakup fees, and hard lessons for dealmakers. The years 2023–2025 saw a wave of failed M&A deals as tightening regulations, market volatility, and boardroom clashes derailed numerous high-profile mergers. This report enhances our previous research by adding data-driven insights, graphs, and verified sources to illuminate the financial fallout and trends behind these busted deals. We also include visualizations of deal values and stock performances, presented in a Medium-optimized format to maximize clarity and engagement.

Why So Many Mergers Failed in 2023–2025

M&A activity slowed overall in 2023 amid economic uncertainty, rising interest rates, and aggressive antitrust enforcement (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (What Happened in M&A in 2023, and What’s Ahead, in Five Charts). Regulatory scrutiny under the U.S. Biden administration reached heights not seen in decades, resulting in courts blocking or delaying multiple mergers (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business). Globally, dealmakers grew more cautious, and many deals announced with fanfare in 2022–2024 ultimately collapsed before closing. Key reasons for failure included:

• Antitrust roadblocks: Regulators (FTC, DOJ, EU, etc.) challenged deals that could harm competition, leading companies to abandon tie-ups rather than fight protracted court battles.
• Market instability: Sudden shifts (like 2023’s regional banking crisis or volatile stock markets) made financing harder and eroded the rationale for some mergers.
• Shareholder and board rejection: Some deals fell apart when boards or major investors deemed the price or terms inadequate.
• Strategic change of heart: In a few cases, the acquiring company or target reassessed the deal’s merits mid-way and pulled out before closing.

Despite these challenges, companies announced numerous mega-deals in this period — only to see many fall through, sometimes in dramatic fashion.

Biggest Broken Deals and Their Values

To grasp the scale, here’s a look at some of the largest merger deals from 2023–2024 that ultimately failed to materialize:

• Kroger & Albertsons ($25 billion): Proposed merger of two grocery giants announced in 2022, blocked by court in late 2024 over antitrust concerns (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters).TD Bank & First Horizon ($13.4 billion): Planned bank acquisition terminated in May 2023 due to regulatory approval delays (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters).
• Tapestry & Capri Holdings ($8.5 billion): Luxury fashion deal (Coach parent buying Versace’s owner) halted by a U.S. judge in 2024 on competition grounds (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters)
• Choice Hotels & Wyndham ($8 billion): Hostile takeover attempt withdrawn in 2024 after Wyndham’s board repeatedly rejected the offers as too low (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal) (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal).
• Medtronic & Carlyle (segments, $7 billion): Buyout of two Medtronic business units fell apart when Medtronic reversed course and opted not to sell in 2024 (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal).
• JetBlue & Spirit Airlines ($3.8 billion): Low-fare airline merger agreed in 2022, but abandoned in 2024 after a court blocked it for threatening competition in air travel (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (details below).

(Albertsons demands billions from rival Kroger after terminating merger bid | Reuters) (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters) (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters) (image) Major failed M&A deals announced in 2023–2024, by deal value (USD). Each of these multibillion-dollar deals was announced with high expectations but ultimately collapsed due to regulatory, market, or governance hurdles.

As the chart shows, antitrust enforcement was a common thread in the largest failed deals. Regulators argued that combining major players (whether in groceries, banking, luxury fashion, or airlines) could reduce competition and raise prices, prompting courts to block several mergers. In the Kroger–Albertsons case, judges sided with FTC and state attorneys general, concluding the merger would hurt consumers and workers (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters). Similarly, the proposed JetBlue–Spirit merger was halted by a federal judge who agreed it would likely lead to higher airfares by eliminating a budget airline competitor (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business).

Not every deal failed due to regulators, however. The Choice–Wyndham saga exemplified shareholder resistance: Wyndham’s board deemed Choice’s $8B bid “inadequate” and refused to engage, leading Choice to abandon the effort (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal) (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal). And in some instances, macroeconomic shifts played a role. Toronto-Dominion Bank’s takeover of First Horizon, for example, was announced before interest rates spiked and U.S. regional banks came under stress; by 2023, TD couldn’t obtain timely regulatory approval amid the changed climate and called off the deal (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters) (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters).

Financial Fallout: Losses, Fees, and Stock Shock

Failed mergers often come with a hefty price tag — not only the opportunity cost of lost synergies, but also immediate financial losses for the companies involved. Some of the key impacts observed in 2023–2025 include:

• Plunging target stocks: When a deal falls apart, the target company’s share price usually tumbles back from the hoped-for buyout price to its standalone value. For instance, First Horizon’s stock nosedived ~40% in a single day after TD Bank canceled its acquisition (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters). Spirit Airlines shares lost about 50% of their value after a judge blocked the JetBlue merger (Spirit Airlines stock rebounds after appeal of JetBlue merger block), reflecting investor disappointment as the anticipated buyout premium evaporated. And when the Tapestry–Capri deal was struck down, Capri’s stock cratered 47% in trading, wiping out nearly half its market cap overnight (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters) (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters).
• Acquirer relief rallies: Conversely, the would-be acquirers’ stocks often rise on news of a merger termination, especially if investors had feared the acquirer was overpaying or taking on too much risk. Grocery chain Kroger’s shares jumped 5% when its Albertsons merger was blocked (Kroger Stock Ends Higher After Judge Blocks Albertsons Merger), and Tapestry’s stock leapt ~13% after it was freed from the $8.5B Capri buyout commitment (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters) (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters). These reactions suggest shareholders were relieved that the companies would avoid the debt or integration challenges associated with those deals.
• Breakup fees and legal costs: Failed deals can trigger contractual termination fees. TD Bank, for example, paid First Horizon $225 million in breakup payments when their bank merger fell through (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters). In the scrapped JetBlue–Spirit merger, JetBlue had to pay a $69 million termination fee to Spirit ( JetBlue Airways Corporation — JetBlue Announces Termination of Merger Agreement with Spirit ) (Spirit’s Financial Future on the Rocks After Failed JetBlue Merger) (on top of earlier prepaid amounts to Spirit’s shareholders). In some cases, disputes over who caused the deal’s failure lead to litigation: after the $25B Albertsons–Kroger merger collapsed, Albertsons sued Kroger seeking a $600 million breakup fee and additional damages (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters) (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters).
• Strategic setbacks and lost time: Beyond immediate dollars, these collapses meant lost strategic opportunities. Companies often spent many months (or years) focused on deal-making, only to end up empty-handed. For instance, Albertsons and Kroger invested two years trying to merge (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters). Spirit Airlines, betting its future on a merger, now faces a “tough financial road” as a standalone and even risk of bankruptcy after the deal’s failure (Spirit’s Financial Future on the Rocks After Failed JetBlue Merger) (Spirit’s Financial Future on the Rocks After Failed JetBlue Merger). Such outcomes can demoralize shareholders and employees, and force management to scramble for Plan B.

(Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) JetBlue (foreground) and Spirit (background) aircraft on the tarmac. Their proposed $3.8 B merger was grounded by antitrust regulators in 2024, illustrating how stricter enforcement derailed even this bid to create a larger low-cost carrier.

The post-mortem stock performances underscore an important lesson: a merger’s collapse isn’t universally “bad news” — it depends on which side you’re on. Target shareholders lose the takeover premium (hence the sharp drops in First Horizon, Spirit, Capri, etc.), while the would-be buyers often avoid a risky endeavor and can refocus on organic growth (hence gains for Kroger, Tapestry, and others when deals were scrapped). From an investor’s perspective, this dynamic shows that not all failed M&As are failures; sometimes walking away preserves value.

Post-Merger Blues: When Completed Deals Disappoint

It’s worth noting that failure can also occur after a merger closes — in the form of poor post-merger performance. Many deals that did go through in recent years struggled to deliver the promised benefits. Studies consistently find that 60–80% of acquisitions fail to create shareholder value (Success and Failure in M&A Execution — An Empirical Study). A notorious example (just before our 2023–2025 window) was AT&T’s acquisition of Time Warner, which ultimately resulted in AT&T spinning off the media business at a multibillion-dollar loss. In our timeframe, consider Warner Bros. Discovery: formed in 2022, it spent 2023 cutting costs and grappling with a heavy debt load, and its stock traded well below its merger debut price — a cautionary tale that even “successful” mergers can falter after the fact.

Factors behind such post-merger underperformance include overpaying for the target, culture clash and integration issues, and external economic shifts. The wave of failed deals in 2023–2025 may reflect acquirers becoming more realistic about these risks. In some cases, backing out of a bad deal before it’s too late saved companies from an even worse fate of a value-destroying merger.

Looking Ahead: Caution and Curation in 2025

As we move through 2025, the M&A landscape appears to be more restrained. Companies are still pursuing strategic acquisitions, but they are carefully selecting targets and negotiating protective clauses (like reverse breakup fees tied to regulatory approval (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters)). Regulators globally show no signs of easing up, especially for deals in tech, healthcare, finance, and other sensitive sectors (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business). This doesn’t mean mergers will stop — but dealmakers are adapting:

• Smaller, tuck-in acquisitions are gaining favor over headline-grabbing mega-mergers, since they draw less antitrust ire and integrate more smoothly (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal).
• Better due diligence and integration planning are being emphasized from the start, to avoid the fate of past deals that unraveled under scrutiny.
• Alternate growth strategies (joint ventures, partnerships, organic expansion) are being considered in lieu of large M&A, especially when regulatory approval is uncertain.

The failed M&A deals of 2023–2025 underscore that bigger is not always better. Investors and executives alike have been reminded that a merger can destroy value just as easily as it can create it. High-priced deals in frothy markets can age poorly if conditions change or synergies don’t materialize. Thus, the current trend is toward discipline and realism in M&A.

Conclusion: Lessons from the Collapse of the Titans

From multibillion-dollar banking tie-ups to supermarket mega-mergers and airline consolidations, the collapse of these deals provides rich lessons. Companies must weigh the risks more carefully — antitrust pushback, integration hurdles, and debt burdens — before leaping into a merger. For regulators and policymakers, the recent spate of blocked deals signals a renewed commitment to curbing excessive consolidation in the interest of consumers.

On the flip side, not all failed deals are tragedies. In some cases, walking away early was the wiser choice to protect shareholder value. As one chapter of merger mania closes, corporate strategists are recalibrating their approach to growth. The coming years will likely see fewer attempted mega-deals, more strategic acquisitions, and a focus on making mergers that do proceed truly pay off.

What do you think? Were regulators right to block these mergers, or did some deserve to succeed? Do you foresee a rebound in big M&A, or is this cautious trend here to stay? Join the discussion by commenting below — we invite your insights on whether these failed mergers ultimately benefit or hurt the economy and consumers.

Sources:

1. Reuters — “TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo” (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters) (TD pulls $13.4 billion First Horizon purchase, leaves US bank in limbo | Reuters)
2. Reuters — “Albertsons…terminates $25 billion merger plan with Kroger after courts blocked the deal” (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters) (Albertsons demands billions from rival Kroger after terminating merger bid | Reuters)
3. Reuters — “US court blocks Tapestry’s $8.5 billion acquisition of Capri” (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters) (US court blocks Tapestry’s $8.5 billion acquisition of rival Capri | Reuters)
4. Fox Business — “Mergers that were blocked or challenged by the Biden admin in 2024” (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business) (Mergers that were blocked or challenged by the Biden admin in 2024 | Fox Business)
5. Investopedia — “Kroger Stock Ends Higher After Judge Blocks Albertsons Merger” (Kroger Stock Ends Higher After Judge Blocks Albertsons Merger)
6. Northeastern University News — “Spirit’s financial future is on the rocks after failed JetBlue merger” (Spirit’s Financial Future on the Rocks After Failed JetBlue Merger) (Spirit’s Financial Future on the Rocks After Failed JetBlue Merger)
7. Washington Business Journal — “Failed mergers: A look at 2024’s biggest broken deals” (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal) (Failed M&A deals: Why some big acquisitions fell apart in 2024 — Washington Business Journal)
8. CNBC — Coverage of Spirit Airlines stock post-merger-block (Jan 2024) (Spirit Airlines stock rebounds after appeal of JetBlue merger block)
9. Bain & Co. — M&A market 2023 review (context on overall decline) (What Happened in M&A in 2023, and What’s Ahead, in Five Charts) (via WSJ)
10. Additional industry reports and press releases for specific deal details (JetBlue Press Release ( JetBlue Airways Corporation — JetBlue Announces Termination of Merger Agreement with Spirit ), etc.) as linked throughout the article.