Thomson Reuters Worldwide M&A Review Q1 2013

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WORLDWIDE M&A UP 10%, DEALS OVER US$5 BILLION ACCOUNT FOR 31% OF M&A

Bolstered by a 63% increase in deals valued over US$5 billion, the value of worldwide M&A totalled US$542.8 billion during the first quarter of 2013, a 10% increase from comparable 2012 levels. Worldwide deals valued over US$5 billion totalled US$167.8 billion during the first quarter, accounting for 31% of announced deal activity in the quarter compared to 21% during the first quarter of 2012. Just over 8,100 worldwide deals were announced during the first quarter of 2013, a 16% decline from a year ago and the slowest quarter for M&A, by number of deals, since the third quarer of 2004.

CROSS BORDER DOWN 24%; EMERGING MARKETS ACCOUNT FOR 25% OF M&A

Cross Border M&A activity totalled US$134 billion during the first quarter of 2013, accounting for 25% of overall M&A volume and down 24% compared to first quarter 2012. Accounting for nearly one-quarter of worldwide announced merger activity, M&A involving companies located in the emerging markets totalled US$128.9 billion during first quarter 2013, a 6% decrease from 2012.

COMPLETED ADVISORY FEES DOWN 11%

According to estimates from Thomson Reuters/Freeman Consulting, M&A advisory fees from completed transactions totalled US$4.7 billion during the first quarter of 2013, an 11% decrease from the comparable period in 2012. Deal activity in the Americas accounted for 53% of the worldwide fee pool, while Europe, Middle East and Africa accounted for 30%. Asia Pacific and Japan contributed 12% and 5%, respectively.

ENERGY & POWER, REAL ESTATE AND TECH LEAD ACTIVITY

The energy & power sector was most active during the first quarter of 2013, commanding 13.4% of announced M&A, while the real estate and high technology sectors accounted for 13.2% and 12.3% of M&A activity, respectively. Telecommunications and consumer staples led all sectors as to growth rate with triple-digit percentage increases over 2012. Materials and energy & power registered declines of 62% and 21% from the first quarter of 2012.

BUYSIDE PRIVATE EQUITY M&A DOUBLES COMPARED TO 2012

Worldwide private equity-backed M&A activity totalled US$117.4 billion during the first quarter of 2013. Private equity deal making in the high technology and consumer staples sectors accounted for two-thirds of activity during first quarter 2013. Accounting for 22% of worldwide M&A during the first quarter, private equity-backed M&A doubled compared to 2012 levels.

Source - Thomson Reuters

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