Magazine article Global Finance

Global Deals Set Record, despite Trade Tensions

Magazine article Global Finance

Global Deals Set Record, despite Trade Tensions

Article excerpt

Worldwide mergers and acquisitions hit a record $3.3 trillion in the first nine months of 2018, and cross-border deals had their strongest first nine months since 2007, according to Thomson Reuters.

Cross-border deals totaled $1.3 trillion in the first three quarters of 2018, a 56% increase compared to the same period a year earlier. That growth was faster than the overall increase in global M&A of 37% year to date.

The nine-month total for 2018 includes 100 megadeals worth more than $5 billion each, which matches the record total of 100 megadeals in the first nine months of 2007.

While the number of worldwide deals declined by 9% year to date to a three-year low, in the volatile emerging markets, the value of announced deals rose 12% in the first nine months of 2018 from the same period a year earlier.

There are, however, "tensions in the air," and protectionist policies could quickly spill over into more targeted attacks on investment flows and export controls, or even currency devaluation, according to a recent report by BNP Paribas.

"The US has taken a fundamental stance against 'unfair' practices facilitated by China's government-led model and looks unlikely to turn down the volume," the bank's strategists say.

This year's Mergermarket global M&A roundup says the third quarter's dealmaking activity was subdued, "as growing geopolitical tensions, trade wars and protectionism dampened spirits and caused corporates to pause over the summer. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.