BUSINESS

Recession: M&A deals down by 35%

Source:PTI
March 09, 2009 19:30 IST
The downturn in global economy has hit the merger and acquisition transactions as their value so far this year has dropped 35 per cent at $384 billion.

"Global M&A volume reached $384 billion via 5,227 deals in 2009 year-to-date (YTD), down 35 per cent from $591.7 billion via 7,662 deals in 2008 YTD," says global deal tracking firm Dealogic.

There has also been a significant drop in large-sized deals of over $10 billion. "There have been nine deals valued over $10 billion announced in 2009 with the total volume of $183.7 billion, accounting for 48 per cent of volume in 2009 YTD compared with 21 per cent in 2008 YTD," it said.

The United States has been ranked as the most targeted nation with total deals worth $165.8 billion, down 27 per cent from $227.8 billion in 2008 YTD.

The US was followed by Germany with $33.6 billion, up almost four-fold from $9.1 billion, however, the number of deals decreased from 279 in 2008 YTD to 250 in 2009 YTD.

"German M&A volume is driven by the $13.6 billion acquisition of Commerzbak by Federal Republic of Germany, the fifth largest M&A deal globally, and the acquisition of Volkswagen by Porsche Automobil for $11.7 billion, the ninth largest M&A deal globally in 2009 YTD," Dealogic added.

A sector-wise analysis shows that finance is the most targeted sector in 2009 YTD with deals worth $101.1 billion, followed by healthcare with $80.2 billion and utility and energy with $52.1 billion, the report said.

It added that the volume of these top three sectors have increased more than 30 per cent in 2009 YTD compared to the same time last year.

Citi leads the Global M&A advisory ranking in 2009 YTD with $125.5 billion, followed by JPMorgan with $122.3 billion and Morgan Stanley with $116.6 billion.

Source: PTI
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