M&A activity is trending downwards this month, according to the latest mergermarket Monthly M&A Insiderfrom Merrill DataSite. What is more, the year is likely to end with lower global volumes than last year, as the above graphic shows. Deal volume in 2012 is down by 29.7% to 3,853 deals, compared to 2011’s total of 5,480 deals.
There are two sectors that have been driving activity of late. One is the energy and utility sectors where the main driver is disposal of non-core assets by companies like Royal Dutch Shell, and Siemens. The other sector highlighted is publishing, where M&A has also been steadier and more robust than other industries, driven by the massive consumer shift to eBooks. (Image source: Merrill DataSite)
Key findings for Europe
- The deal volume was down for M&A in Europe, compared to last November. There was a slight increase in deal size to EUR 95.7 million on average, which is 1.1% higher than 2011’s EUR 94.7 million average
- The decline is believed to be largely caused by “apprehensive investors sitting on cash reserves, while avoiding risky or hasty deals”
- 254 European deals, worth EUR 18.6 billion, representing 5.1% of overall M&A activity for the year to-date of EUR 368.7 billion