Global M&A Roundup For Q1 – Q3 Of 2019 – ValueWalk Premium
League Table

Global M&A Roundup For Q1 – Q3 Of 2019

Mergermarket, an Acuris company, released its Global M&A roundup for Q1 – Q3 of 2019, including its financial advisors league tables. Take a look at the report HERE and don’t forget to review the charts breaking down the activity by sector, value, year-to-year analysis, etc.

Q2 hedge fund letters, conference, scoops etc

A few key findings include:

  • The slowdown in dealmaking spread to the US market in 3Q19, causing global M&A to drop 11.4% YTD on last year to USD 2.49tn (across 13,304 deals). Activity was particularly subdued in the difficult to interpret third quarter of the year, when USD 622.2bn worth of deals were struck globally, down 21.2% on 3Q18 (USD 789.7bn) and with 1,164 fewer deals than last year
  • The US market, which had so far seemed immune to the global downward trend at play since the middle of last year, is starting to be impacted. At USD 262.9bn in 3Q19, US M&A has fallen to its lowest quarterly value since 1Q16 (USD 254.6bn). Worth USD 1.25tn YTD, US M&A is still marginally up on the same period last year (USD 1.23tn), just about retaining a 50% YTD share of global M&A activity, down from 52.5% in 1H19
  • Driven by mega deals, the average deal size among disclosed deals increased 39% in the US compared to the same period last year. Through 3Q19, the average deal size of disclosed deals in the US was USD 831m, compared to USD 596m for average disclosed deal values through 3Q18

Global Overview

Regional M&A Comparison

League Table

Global

League Table

The slowdown in dealmaking spread to the US market in 3Q19, causing global M&A to drop 11.4% YTD on last year to USD 2.49tn (across 13,304 deals). Activity was particularly subdued in the difficult to interpret third quarter of the year, when USD 622.2bn worth of deals were struck globally, down 21.2% on 3Q18 (USD 789.7bn) and with 1,164 fewer deals than last year.

The US market, which had so far seemed immune to the global downward trend at play since the middle of last year, is starting to be impacted. At USD 262.9bn in 3Q19, US M&A has fallen to its lowest quarterly value since 1Q16 (USD 254.6bn). Worth USD 1.25tn YTD, US M&A is still marginally up on the same period last year (USD 1.23tn), just about retaining a 50% YTD share of global M&A activity, down from 52.5% in 1H19.

Marred by the trade and tech war between Washington and Beijing and persistent political instability in Hong Kong, YTD M&A activity in Asia is down 26.5% over last year to USD 417.2bn. China and Hong Kong accounts for only 7.8% of global M&A activity so far this year, down from 11.4% last year and a far cry from 2015, when they were responsible for 15.6% of the total global value of deals. In fact, the largest deal of the year so far in the region was struck between Japan and Australia with Asahi’s AUD 16bn (USD 11.3bn) acquisition of Australia-based brewery Carlton & United Breweries (CUB) from Anheuser-Busch InBev in July.

After an abysmal performance in 1H19, Europe has enjoyed a very relative recovery over the summer, with the value of deals in 3Q19 reaching USD 166.5bn across 1,551 transactions down only 2.3% compared to 3Q18 (USD 170.5bn across 1,974 deals). YTD, European M&A is still down 29.4% compared to the same period last year.

The largest deal of the quarter, London Stock Exchange’s USD 27bn acquisition of US-based financial data provider Refinitiv, which will be going through severe merger control scrutiny, is only the tenth largest deal of the year so far. But it exemplifies the strength of European outbound M&A, which at USD 187.1bn is up more than 20% on last year and at its highest YTD level since 2016.

It also serves as a reminder that in spite or perhaps because of slowing global economic growth, which, according to a recent Organisation for Economic Cooperation and Development (OECD) report, could, in 2019, be the weakest since the 2008 financial crisis, appetite for large transformative deals is still strong among corporates. So far this year, 31 megadeals (> USD 10bn) took place, only the second time since 2008, that more than 30 such deals are recorded within the first nine months of the year.

With regards to large deals, the Pharma, Medical & Biotech (PMB) sector never fails to deliver and managed to put three deals in this quarter’s global top 10, including the creation of a mighty generic drugs maker through the combination of USbased Mylan and Pfizer’s Upjohn, which is itself expected to engage in M&A, as reported.

Whether they are motivated by the desire to get more growth, or a way to secure future survival, deals are getting larger. On the back of the longest equity bull market in history, and amid persistently low interest rates, corporates have ample cash reserves and appealing debt financing options at their disposal to pursue M&A. This context and the growing feeling that it will not last forever are pushing valuations up. At USD 424.6m YTD, the average size of deal with a disclosed value is up from USD 380.1m in 2018, and the highest on Mergermarket record by some margin.

Private equity’s unquenchable thirst has been another source of great consolation for global dealmakers. With a disclosed USD 394.1bn spent by private equity firms so far this year, buyout activity is not too far from the record levels seen this time last year (USD 457.7bn).

European private equity firms have been showing particularly strong interest for North American assets. Six buyouts above USD 1bn have already been conducted by European sponsors on North American soil this year, five of which in 3Q19. Deals such as BC Partners’ acquisition of a 51% stake in Canada, Montreal-based security services group Garda World Security in July or Permira’s take-private of US-based life sciences company Cambrex in August have helped take the crossborder buyout activity between the two continents to record levels.

“Whether they are motivated by the desire to get more growth, or a way to secure future survival, deals are getting larger” – Beranger Guille, Global Editorial Analytics Director

League Table

League Table

Global League tables

League Table

Global Private Equity – Buyouts

League Table

Global Private Equity – Exits

League Table

Buyouts – Investors’ activity

League Table

Buyouts – Regional Breakdown

League Table

Global Private Equity League tables

League Table

See the full report here.


X
Saved Articles
X
TextTExtLInkTextTExtLInk

0