Global M&A volume marginally down to US$ 2.70 t

NEW DELHI (PTI): Global merger and acquisitions (M&A) volume was marginally down at US$ 2.70 trillion this year compared to that in 2010, says a report by deal tracking company Dealogic.

The report has taken into consideration deals up to 20 December 2011. In the corresponding period last year global M&A volume stood at US$ 2.74 trillion.

The year 2011 saw good deal activity in the first half when transactions worth US$ 1.52 trillion were announced. In the second half, M&A volumes dropped 22 per cent over the last year to US$ 1.18 trillion.  The fourth quarter was worst hit this year, as M&A deals worth US$ 537.1 billion were announced which is the lowest quarterly volume since Q3 2009, Dealogic said.  The United States was the most targeted nation as it attracted 9,873 deals, followed by China with 3,941 deals.  “US targeted M&A totalled USD 996.5 billion in 2011, the highest annual volume since 2008 (US$ 1.03 trillion) and up 12 per cent from 2010,” Dealogic said.

Region wise other major focus was on the United Kingdom (2,356 deals), Australia (1,649 deals), Japan (2,424 deals), Canada (2,156), France (1,449) and Brazil (588).  However, Europe, Asia Pacific and Emerging markets targeted M&A declined year on year.  Europe targeted M&A was US$ 760.4 billion in 2011, down three per cent from 2010 (US$ 781.5 billion). Asia Pacific (excluding Japan) M&A decreased to US$ 524.1 billion, down four per cent from 2010 (US$ 546.2 billion).

Emerging market targeted M&A declined to US$ 709.6 billion, down 21 per cent from US$ 895.1 billion in 2010, Dealogic said.  Sector wise, oil and gas was the leading sector for global M&A in 2011, despite 17 per cent drop in volume to US$ 259.3 billion compared to 2010 when it stood at US$ 312.5 billion.

The mining sector recorded its highest deal count with 2,622 deals announced as volume increased 19 per cent to US$ 159.2 billion.