Global M&A rises 8.9% as deals touch $678 bn in Jan-Mar: Mergermarket

Global merger and acquisition activity got off to a good start this year with deals worth $678.5 billion announced in the first quarter, a rise of 8.9 per cent over last year, says a Mergermarket report.

According to the global deal tracking firm, there were 3,554 deals worth $678.5 billion announced in January-March quarter of this year, while in the corresponding period last year there were 4,326 deals worth $622.9 billion.

A year-on-year comparison shows that though there has been a decline in the number of transactions, the deal value has increased, which means that more money has been put in fewer number of transactions.

"Due to ongoing uncertainty regarding upcoming European elections, transactions will be viewed as more precious, with larger sums being invested in fewer deals," Mergermarket said in its report.

The report further said the average size of disclosed deal value also reached its highest level in the January-March quarter due to nine mega-deals (worth over $10 billion).

Global deal making so far has remained resilient but deal activity got affected due to political uncertainties, it said.

Political uncertainty in Europe appears to have affected activity from international deal makers pursuing deals in the region.

Europe inbound M&A activity in the January-March quarter stood at $71.7 billion, by way of 262 deals, marking the lowest first quarter since 2014 when transactions worth $55.8 billion were announced.

Moreover, amid strict regulation imposed on transactions valued over $2 billion, China outbound deal making witnessed significant decline.

Chinese dealmakers invested in 75 deals worth $11.8 billion outside their borders in the first quarter, a drop of 85.6 per cent in value compared to same period last year, it added.