Deal Drivers EMEA

01 July 2016

Mergermarket is pleased to release the half-year edition of Deal Drivers EMEA, in association with Merrill Corporation.

This report provides an in-depth review of M&A activity for the half-year of 2016, offering key insights into how announced deals for H1 2016 will impact M&A for the year ahead.

Highlights from the report include:

  • Transatlantic activity dipped in the first half of 2016, partly in anticipation of the UK referendum and November’s US presidential election. Inbound deals from North America into Europe fell to 297 deals during H1 2016, down 18% compared to H1 2015, while deal value also slumped by 27% to €46.8bn. The incumbent Obama administration also became more outspoken against tax inversion deals which made larger corporates more hesitant to look for tax domiciles in Europe. This had a particular effect on the pharma sector
  • Private equity firms have become increasingly cautious with fund allocation. Compared to H1 2015, PE buyout value was 33% lower (€38.6bn) despite an 8% rise (559) in deal volume in H1 2016
  • The prolonged depression in crude oil is expected to create opportunities within the Gulf economies. Most notably, Saudi Arabia recently moved to ease restrictions on foreign ownership.