Global M&A volume marginally down to $2.70 trn

Global merger and acquisitions (M&A) volume was marginally down at $2.70 trillion this year compared to that in 2010, says a report by deal tracking company Dealogic.

The report has taken into consideration deals up to December 20, 2011. In the corresponding period last year global M&A volume stood at $2.74 trillion.

The year 2011 saw good deal activity in the first half when transactions worth $1.52 trillion were announced. In the second half, M&A volumes dropped 22% over the last year to $1.18 trillion.

The fourth quarter was worst hit this year, as M&A deals worth $537.1 billion were announced which is the lowest quarterly volume since Q3 2009, Dealogic said.

The United States was the most targeted nation as it attracted 9,873 deals, followed by China with 3,941 deals.

"US targeted M&A totalled $996.5 billion in 2011, the highest annual volume since 2008 ($1.03 trillion) and up 12% from 2010," Dealogic said.

Region wise other major focus was on the United Kingdom (2,356 deals), Australia (1,649 deals), Japan (2,424 deals), Canada (2,156), France (1,449) and Brazil (588).

However, Europe, Asia Pacific and Emerging markets targeted M&A declined year on year.

Europe targeted M&A was $760.4 billion in 2011, down 3% from 2010 ($781.5 billion). Asia Pacific (excluding Japan) M&A decreased to $524.1 billion, down 4% from 2010 ($546.2 billion).

Emerging market targeted M&A declined to $709.6 billion, down 21% from $895.1 billion in 2010, Dealogic said.

Sector wise, oil and gas was the leading sector for global M&A in 2011, despite 17% drop in volume to $259.3 billion compared to 2010 when it stood at $312.5 billion.

The mining sector recorded its highest deal count with 2,622 deals announced as volume increased 19% to $159.2 billion.