Mergermarket’s Q3 trend report shows that global M&A dealmaking in 2016 has not been able to achieve the same record heights reached last year, with political uncertainty, increased regulation and decreased confidence all weighing down activity. To-date in 2016, 12,283 deals worth US$ 2.2tn represents a 20.2% value decrease compared to the same period in 2015. Despite this, M&A deal value has experienced two quarterly value increases this year, with Q3 (US$ 812.9bn) increasing 8.8% compared to Q2 (US$ 747.2bn).
Key highlights from the report include:
- Industrials & Chemicals was the most targeted sector globally with 2,313 deals worth US$ 416.8bn representing a 41.1% value increase compared to the same period in 2015.
- Acquisitive Chinese buyers invest in 201 deals worth US$ 141.2bn so far this year targeting firms outside of the Asia-Pacific region, overtaking all annual deal values and volumes on Mergermarket record (since 2001).
- Opportunistic dealmakers engage in bargain hunt for UK assets following Brexit vote, with inbound activity jumping 283.0% by value compared to Q2.
Bayer AG’s bid for Monsanto Company was the largest deal in Q3, worth US $65.3bn and boosting deal value for the Industrials and Chemicals sector.
Goldman Sachs leads the financial advisor rankings, having advised on 185 deals worth US $ 602.2bn.
White & Case leads the legal advisor rankings, having advised on 224 deals worth US $ 421,6bn.