Worldwide M&A Up 6% from 2012; Best Annual Period for Deal Making in Two Years
Announced worldwide M&A totals US$430.4 billion so far this year, an increase of 6% compared to year-to-date 2012, and the strongest year-to-date period for worldwide M&A since 2011 (US$638.4 billion). Americas targets accounted for 58% of global activity in the year-to-date period, ahead of Europe (US$91.4 billion, 21%).
US M&A Up 62%; European Mergers Down 31%
Bolstered by large-cap private equity-backed M&A, US targeted M&A announced so far during 2013 totaled US$207. 1 billion, up 62% from year-to-date 2012 and is the strongest year-to-date period for US deal making since 2011. M&A in Europe has reached US$91.4 billion so far in 2013, down 31% from the previous year-to-date period. First quarter M&A activity in Europe has fallen 63% compared to the fourth quarter of last year.
JP Morgan Top Worldwide M&A Advisor for Q1'13 – Takes Top Spot in the US and Europe
JP Morgan took the top position for worldwide announced M&A advisory work during year-to-date 2013, up from third place during the first quarter of 2012. The firm also placed first in US and European Any Involvement M&A during the first quarter of this year. Goldman Sachs maintained second place, while Bank of America Merrill Lynch moved from 10th place to third. Barclays, which was the top worldwide financial advisor during the first quarter of 2012, fell to ninth place this year.
Energy & Power, Real Estate and Financials Lead All Sectors; Consumer Staples, Telecom and Media Register Gains
M&A in the energy and power sector reached US$60.5 billion so far during 2013, down 34% from the first quarter of 2012, while M&A in the real estate sector totaled US$50.5 billion so far in 2013, down 17% from last year at this time. Three sectors – consumer staples, telecom and media and entertainment - have registered triple-digit percentage gains over 2012 levels.
Buyside Financial Sponsor M&A Up 58%; US Accounts for 79%
Global private equity backed M&A totaled US$85.2 billion during year-to-date 2013, a 58% increase over 2012 levels. First quarter activity has registered a 19% decrease over the fourth quarter of last year, the first quarterly decline for PE-backed M&A since the first quarter of 2012. Private equity-backed M&A targeting the US reached US$67.4 billion during year-to-date 2013, accounting for 79% of annual activity.
Emerging Markets M&A Falls 37%; Cross-Border Down 10%
Year-to-date figures for emerging markets target M&A have reached US$50.3 billion, accounting for 12% of total M&A, down 37% compared to first quarter 2012. Chinese M&A activity accounted for approximately 45% of emerging markets acquirors and targets during the first quarter of 2012. Registering an decrease of 10% from last year at this time, cross-border M&A totaled US$112 billion during first quarter 2013, accounting for 26% of total M&A activity this year compared to 31% during year-to-date 2012. The US initiated 27% of all acquisitions abroad so far in 2013 ahead of the China (12%) and the Canada (6%), while the US, Ireland and the United Kingdom were the target of 34% of all cross-border acquisitions.
Leon Saunders Calvert, Head of Banking & Research for EMEA at Thomson Reuters, commented: 'As a degree of confidence returns to the global economy we can see this cautious optimism reflected in the growth of deal activity. This improvement does not come without bumps, however. The European markets continue to lag behind as the goalposts associated with a full resolution to the Eurozone crisis appear to be continually pushed out, Cyprus proving to be the most recent new set back. The focus on activity in core sectors, together with the ongoing lack of cross border and emerging market transactions, implies a retrenchment and focus on safe deal activity until further equilibrium settles in the global markets'.