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.

ABOUT THE AUTHOR
Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

Read more from Mona Dohle

preloader
Close Window
View the Magazine





You need to fill all required fields!