Global M&A activity picks up steam

After witnessing a lull for quite some time, the global merger and acquisition activity is finally catching up some speed, with as many as eight deals worth more than $1 billion each, being announced in the last seven days.

According to global deal tracking firm Dealogic there were as many as eight deals valued over $1 billion that were announced last week adding up to $38.2 billion.

"This is the highest weekly volume for deals over $1 billion since the week of June 22 when the $48.3 billion Anglo American/Xstrata deal was announced and volume totalled $61.5 billion," Dealogic added.

There has been an increase in average deal size as well.

"Average deal size last week reached $111.4 million, the highest weekly average since the week of June 1, 2009 when this average totalled $120.8 million," Dealogic added.

A sectoral analysis of the global M&A deal activity since the third quarter of 2009 till date shows that telecom makes up the largest percentage share of deals in the over $1 billion category with eight deals making up $24.5 billion.

Finance comes in second position with $24.1 billion followed by food and beverage with $22.1 billion.

In terms of market share, telecom enjoyed the maximum (14 per cent), followed by finance (13 per cent), food and beverage (12 per cent), health care (11 per cent) and auto (9 per cent).