BY Fraser Tennant
Mergers & acquisitions (M&A) activity during the first nine months of 2016 is the topic of a new report released this week by Dealogic.
Among the headline figures contained in ‘Global M&A Review: Nine Months 2016’ is the 22 percent year-on-year (YOY) drop in M&A volume, down to $2.55 trillion from $3.27 trillion.
In terms of key regional headline data, the report reveals that US targeted M&A volume was down 30 percent YOY. Furthermore, domestic US M&A volume fell 38 percent to $771.3bn.
Looking to M&A volume in Europe, the UK reached $62.1bn by the end of 3Q 2016, its highest recorded 3Q figure since 2008.
As far as global cross-border M&A volume is concerned, activity in the first nine months of 2016 was valued at $899.5bn, down 9 percent YOY. Furthermore, US inbound M&A was $327.9bn, only slightly behind the all time record of $330.6bn set in 2015.
In terms of M&A in the Asia Pacific region, China and Japan were the top acquiring Asian nations of US targets. Chinese acquisitions reached an annual record high for both volume and activity, with $35.7bn via 124 deals. Japan announced 132 deals worth $17.4bn, down 39 percent YOY.
Leading the M&A advisor rankings is Goldman Sachs with transactions totalling $613.3bn, followed by Morgan Stanley on $476.3bn and JPMorgan on $459.9bn.
Technology was the top sector (replacing healthcare) with a total of $475.4bn, just ahead of its previous record of $446.1bn in 2015. Conversely, healthcare, which also hit an annual record high in 2015, was down 48 percent YOY to $255.4bn.
The report also showcases the ‘Top 10 Announced M&A Transactions First Nine Months 2016’ with Bayer’s $66.3bn acquisition of Monsanto, announced in May 2016, top of the list. Second is the $46.7bn acquisition of Syngenta by China National Chemical Corp (ChemChina) in February 2016 - the largest ever cross-border transaction by a Chinese acquirer. In third place is the September 2016 deal which saw Enbridge Inc acquire Spectra Energy Corp for $43bn, in the largest Canadian outbound deal on record and the fifth largest utility & energy deal on record.
Finally, Dealogic confirms that the total of withdrawn M&A in the first nine months of 2016 was $752.8bn. This includes the $28.9bn Praxair/Linde deal and the $25.4bn Mondelez International/Hershey transaction.