Global M&A is still struggling and Europe is feeling the sting more than others, according to quarterly research by mergermarket.
Global M&A is still struggling and Europe is feeling the sting more than others, according to quarterly research by mergermarket.
M&A activity across the world is at its lowest ebb in terms of the number of deals (1,759) and combined value (£152.4 billion) since 2003.
The report reveals that US M&A activity shows the greatest promise owing to high profile deals in the healthcare and technology sectors, while European M&A activity continues to suffer.
European M&A accounts for 24 per cent of global activity by value and 38 per cent by volume, which is down from 42 per cent and 43 per cent for the same period last year. The UK and Ireland continue to lead the field, representing close to 20 per cent of European M&A by value and volume.
Despite the decrease, the energy and mining sector has performed robustly, making up 40 per cent of the total value of European M&A deals this year, an increase of 20 per cent from 2008.
Private equity in Europe fared even worse, with an 85 per cent slump in buy-out levels by value and a 58 per cent reduction by volume for the first nine months of the year.
Although the average number of deals per month in the US (217) is at its lowest level since 2002, the recent return of larger deals shows that optimism is gathering. In the last two weeks of August, Walt Disney’s acquisition of Marvel Entertainment and Baker Hughes’ purchase of Delaware’s BJ Services had a combined deal value of $16.2 billion. Other major deals include Dell’s $3.8 billion takeover of Perot Systems and Adobe Systems’ $1.6 billion acquisition of Omniture.
