Cross Border M&A Index

 

Q4 Index Dips Slightly But Stage is Set for Future Deals
Submitted by Baker & McKenzie

With global events remaining turbulent and unpredictable throughout Q4 2016, this quarter’s Baker McKenzie Cross-Border M&A Index dipped very slightly on the previous quarter but overall market conditions look good for long-term dealmaking.

Uncertainty in the aftermath of the Brexit vote, coupled with shockwaves from the US election result as well as ongoing political destabilization in Europe and slower deal activity coming out of China have certainly had a downward effect on M&A year on year but the market has remained fairly resolute quarter on quarter.

Highlights from Q4 2016:

  • Buyers announced 1,429 cross-border deals worth US$388.2bn, a 2% uplift in volume and only a 1% drop in value compared with the previous quarter.
  • On the sector side, industrials lead the way this quarter, with 227 deals worth US$19bn (compared with 196 deals worth US$29.1bn in Q3). Technology deals enjoyed the highest value with US$66.9bn, followed by energy and utilities (88 deals worth US$63bn). Half of the top ten deals of the year were either in the technology or energy and utilities sectors.  
  • Cross-border M&A made up 39% of all deal value and 34% of all deal volume in Q4 2016.
  • Deals from North America into the EU were the big story, with US$98.8bn spent on 185 deals, including the largest deal of the quarter.

FULL REPORT can be viewed here.