Global M&A deals touch $1 trn mark: Dealogic

This year it took 145 days to reach the mark as against 118 days last year

Global merger and acquisition (M&A) deal volume reached $1 trillion mark in May this year taking longer than last year, when it reached the target a month earlier, says a report by deal tracking firm Dealogic.

As per Dealogic data, this year it has taken a longer time to reach the $1 trillion mark as it took 145 days (till May 28) to reach the psychological mark, while last year it reached $1 trillion in just 118 days (till April 28).

According to market experts, overall, the M&A landscape is witnessing moderation in the deal momentum due to the global economic concerns (mainly around Europe).

The cumulative value of M&A deals globally during the first five months of this calender year stood at $1.07 trillion, down 19% from $1.32 trillion in the same period last year.

A sector-wise analysis shows that so far this year oil & gas was the most targeted sector in 2012, as it attracted deals worth $139.7 billion, followed by real estate which cornered $110.2 billion. The technology space came in the third place with transactions worth $98.5 billion.

The US targeted M&A decreased by 22% to $355.9 billion in 2012 so far against the same period last year. European M&A slipped 27% to $306.5 billion and Asia Pacific (ex Japan) M&A declined 14% to $208.5 billion.

Goldman Sachs lead the M&A advisory ranking in the January-May period with $219.8 billion, followed by Morgan Stanley ($217 billion) and JPMorgan ($215.6 billion).