Global and Regional M&A: Q1 2017
Provided by MergerMarket, a Partner of M&A Leadership Council
Mergermarket has released its Global M&A roundup for the first quarter of 2017 (Q1), including its league tables for financial advisors. Take a look at the report HERE! And please make sure to take a look at some of the great charts breaking down the activity by sector, value, year-to-year analysis, etc.
A few key findings include:
- Global dealmaking so far has remained resilient in the face of an uncertain year, with 3,554 deals worth US$ 678.5bn announced in the first quarter representing an 8.9% increase in value compared to the same period last year (4,326 deals, US$ 622.9bn). Due to ongoing uncertainty regarding upcoming European elections, transactions will be viewed as more precious, with larger sums being invested in fewer deals. This is reflected in the average size of disclosed value deals (US$ 403.4m), which reached its highest Q1 level on Mergermarket record (since 2001) due to nine recorded mega-deals (>US$ 10bn), up from eight in Q1 2016
- A stand out trend has been the number of Consumer mega-deals announced, with a record three deals valued over US$ 10bn resulting in the sector deal value (395 deals, US$ 136.1bn) reaching its highest valued Q1 since 2008 (497 deals, US$ 180.2bn). This rebound in activity follows on from a slow 2016, where just one mega-deal (Danone/Whitewave Foods) was announced for the whole year. Deals such as BAT/Reynolds (US$ 60.8bn), Luxottica Group/ Essilor International (US$ 25.4bn) and Mead Johnson/Reckitt Benckinser (US$ 17.8bn) caused Q1 value to already account for 61.6% of total 2016 Consumer activity (2,181 deals, US$ 220.9bn)
- For the US, Energy, Mining & Utilities (EMU) was the quarter’s top sector, continuing to drive dealmaking and registering a 28.4% US market share. EMU also hit a record Q1 value of US$ 85.3bn with 86 deals, a 71.5% increase in value over Q1 2016 (US$ 49.8bn) despite a fall in deal count by nine. The Energy subsector (US$ 76.8bn) accounted for most of the rise with 90.1% of EMU market share, while Mining had 2.2% (US$ 1.9bn), and Utilities 7.7% (US$ 6.6bn)
