Global M&A: summer break? No thanks!
Summer global M&A activity has not been really affected by concerns of China’s economy and persisting European instability. Quite busy month of August with global M&A up by 12.7% in value, notwithstanding a drop in number of deals. Q4 expected to be positive.
According to the latest “Monthly M&A Insider Report” published by Merger Market in collaboration with Merril Datasite, although a historically traditional slowdown of activities during the summer break, uncertainty of Eurozone and China’s Stock Exchange summer crisis, the last month of August has been quite busy, thus raising hopes for a positive Q4.
A total of 952 deals have been closed in August, equal to a value of 297.8$bn, compared to the 1.297 deals and 264.3$bn of the same period last year, with an overall global +12.7% in value and – 26% drop in volume, thus recording an increase in average deal size.
North America and US mainly, confirms to be the most relevant area, with a total of 307 deals closed worth 177.3$bn, representing 59.5% of global value, followed by Asia-Pacific (Japan excluded) with 19.7% and Europe (17.2%).
Europe showed a more traditionally quiet August, with 323 transactions worth a total of 51.3$bn, compared to the 411 of August 2014 valued 52.1$bn (an acceptable -1.6% decrese in value). In terms of sectors, activity volume has been mainly driven by Industrials & Chemicals (67 deals), Consumer (39 deals) and Financial Services (27 deals).
For what concerns Italy, our country saw a rise in value in August (ranking 1st by value in Europe), with a record of 14.4$bn (mainly driven by 11.4$bn merger between Wind and 3 Italia) and 19 closed transactions.
In conclusion, the August data witness the positive permanence of a globally lively post-crisis M&A market, even though mainly driven by value, in a period traditionally pretty flat and quiet and notwithstanding China’s economy concerns, which make analysts expecting an overall positive Q4.