Global M&A: Return of megadeals

Global (Merger & Acquisition) M&A volumes have reached record levels in 2015, the latest data presented by German ZEW Institute and Bureau van Dijk suggest.

Driven by a combination of favourable financing options and growth ambitions of multinationals, 2015, has seen a sharp increase in the number of megadeals, defined as transactions exceeding €1bn.

Between January and July 2015, 189 megadeals have been closed, amounting to a transaction volume of €1.020bn, until the year end, the ZEW Institute predicts M&A to rise to 324 transactions, amounting to a volume of €1.750.

ZEW data suggest that if M&A transactions continue at this pace, the volume of deals is set to exceed those of the 2007 peak, when annual transaction volumes were at €1.560bn.

The data also reveal a shift in country allocation. The majority of M&A transactions involve at least one US company, while only 8% of target companies are British,, 4% Australian, 3% are Canadian and French respectively. Russia has clearly fallen out of favour, while over the past years, 4% of target companies were Russian, this year, only one M&A transaction involved a Russian company, according to ZEW.

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