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TRANSACTIONS WORTH $3.45trn

Global M&A values hit record high in 2013

Manama, January 22, 2014

The value of global mergers and acquisitions (M&A) rose in 2013 to the highest level recorded since 2009, with the improvement coming after the volume fell back to its lowest point since 2008, a report said.

In total, there were 71,811 transactions worth a combined $3,450 billion in the year under review, according to information collected by the leading M&A database Zephyr, reported the Gulf Daily News, our sister publication.


Positive results in North America, Western Europe, Central and Eastern Europe contributed towards the overall improvement on 2012, though activity in these regions was counteracted somewhat by declines in Asia-Pacific and the Middle East, Zephry added.

The value of M&A with targets based in Western Europe during last year rose 12 per cent year-on-year to $908,790 million from $811,612 million in 2012, while investment in North America increased 27 per cent to $1,302 billion, in spite of volume decreasing significantly over the 12 months.

M&A targeting Central and Eastern European countries improved the most out of all the regions under review as value more than doubled year-on-year to the highest recorded since 2007.

Indeed, of all regions examined in the period under review, only Asia-Pacific and the Middle East registered declines in value, with the latter reaching its lowest level of the last six years and halving from 2012.

Asia-Pacific's result represents its fourth consecutive year of decline.

"M&A activity in most regions increased last year, and globally value reached its highest level for a number of years," Zephyr director Lisa Wright said.

"Interestingly, the increase in value comes at the same time as volume reached its lowest level since 2008, suggesting considerations are increasing and investors are starting to regain confidence."

Meanwhile, the Zephyr database shows global private equity and venture capital investment more or less mirrored the trend seen in M&A deals, as value increased 15 per cent on 2012 while volume slid from 8,831 deals to 8,593.

The rise in global private equity value represents the fourth consecutive year of growth.

The Zephyr database shows that while the overall volume of global private equity and venture capital deals declined over the 12 months, the result was the second highest recorded since 2008. – TradeArabia News Service




Tags: Private equity | Zephyr | M&A | Merger & Acquisition |

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