Magazine article Global Finance

Global M&A Falls to Lowest since 2009

Magazine article Global Finance

Global M&A Falls to Lowest since 2009

Article excerpt

The value of global mergers and acquisitions has failed to pick up, despite low interest rates and an improving global economy. Worldwide M&A totaled $2.4 trillion in 2013, a decline of 6% from a year earlier and the lowest since 2009, according to Thomson Reuters. The number of deals fell 7% last year to 36,800, the lowest since 2005.

Megadeals in the TMT (technology, media and telecom) sector were the highlight of 2013, according to Mergermarket. TMT was the dominant industry by both value and deal count, with 775 deals worth $298 billion, a 76% increase from 2012. The biggest deal of last year, valued at $124 billion, was Verizon Communications' purchase of a 45% stake in Verizon Wireless from Vodafone Group of the UK.

M&A advisory fees from completed transactions in 2013 totaled $22.5 billion, a 12% decrease from 2012, according to estimates from Thomson Reuters/Freeman Consulting. M&A advisory fees were the only segment across investment-banking products to show a double-digit percentage decline last year.


Cross-border M&A activity declined 18% in 2013 to $738 billion. After posting a significant net M&A outflow of nearly $50 billion last year, the US has begun 2014 with inflows accelerating sharply, according to a report by Deutsche Bank strategists George Saravelos and Oliver Harvey. In contrast, M&A outflows appear to be picking up again out of Japan, the report says. The eurozone had the highest M&A inflows last year of more than $50 billion, although inflows have slowed recendy.

Private-equity-backed M&A activity rose 22% worldwide last year, Thomson Reuters reports. Private equity deals in the technology, consumer staples and energy sectors accounted for 47% of the activity during 2013, up from 30% in 2012. The upward trend is expected to continue this year, in light of the record level of dry powder available for private equity funds. …

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