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M&A in 2007

In 2007, the deal volume of global mergers and acquisitions reached historic levels with 4.83 trillion. Though the first half of 2007 was very good with the deal volume of 2.7 trillion, the second half of 2007 has seen significant drop in deal volume due to the credit crunch. Finance, Real Estate, Utility & Energy and Telecom have contributed nearly %50 to the total deal volume in 2007. In 2007, the cross border deal volumes of mergers and acquisitions represented approximately 41% of the total deal volume of the year.

The top five mergers and acquisition deals in 2007 were AT & T T Mobile, Duke Energy Corp-Progress Energy Inc. and Sanofi Genzyme Group.

M&A 2008

Merger and acquisition (M&A) activity slowed in 2008. The trend has become even starker when examined in quarterly terms while the first quarter of the year held up well, subsequent quarters witnessed a precipitous decline. The total value of M&A deals rose by almost 8% percent in 2008 as compared to 2007 as pharmaceuticals companies were busy acquiring entire biotech companies as opposed to licensing or buying out just a few established drugs. the average premiums paid for deals has been on an upward trend since 2008 and are nearing the highs we saw back in 2000 and into 2001.

M&A 2009

With overall deal value and volume ending the year 27% down on the previous year; 2009 was not a good year for M&A. 2009 did set a new record, with numbers and values of insolvency deals eclipsing even the peaks of 2002. As 2009 offered opportunistic buyers with the available capital there was a staggering 370% increase in the value of insolvency deals since 2008. The biggest M & A deals in 2009 have been the Pfizer-Wyeth acquisition for $68 billion, Roche-Genentech $46.8 billion and Merck-Schering Plough $41 billion. Though there is still uncertainty in the markets, there are signs that the momentum will carry into 2010.

M&A 2010

In the year 2000, the Americas accounted for approximately 60% of worldwide deal value and 40% of the number of transactions. Today, those figures have declined to 45% of worldwide value and 30% of total number; the major reason behind this trend is China. In early 2010, JPMorgan forecast that China would account for 8-9% of global M&A activity in 2011, up from the 2-4% it averaged between the years of 2003 and 2007. Global M&A up 23% from 2009; strongest year for private equity buyouts since 2007; ross-border deal flow up 71% from 2009. The Energy, Mining and Utilities sector accounted for US$ 225.2bn or 28.1%, with Europe the most active cross-border investor in the sector.

M&A 2011

Following a lacklustre 2009 and an uneven 2010, 2011 has signalled further economic recovery and a gradual increase in M&A activity; 2011 was the first to see an upward trend in exit premiums in the US and Europe since 2008.

Global M&A for the year to date totalled US$ 2,178.4bn, up 2.5% from the same period in 2010 (US$ 2,125.9bn), making it the busiest year since 2008 (which saw US$ 2,405.8bn). Worldwide, the level of M&A activity in 2011 well exceeded 2010 levels for all the industries and sectors such as energy and power, materials, and industrials.
The Energy, Mining & Utilities sector saw the highest total value of M&A deals in 2011, accounting for 25.6% of global M&A deals announced, with deals totalling US$ 557.7bn.

M&A 2012

Global M&A in 2012 (US$ 2,243.8bn) was on par with 2011 (US$ 2,243.9bn) despite euro woes and fiscal cliff concerns. Agriculture, Consumer, Media, Construction, Defence, Transport and Business Services all improved deal values compared to the previous year. Agriculture saw the greatest increase on 2011, up 60.9% to US$ 16.3bn from US$ 10.1bn. Consolidation in the advertising market is expected to continue where bidders look for sector expertise and geographical scale. Strategic acquisitions are preferred over organic growth to remain competitive. It is expected that the Algerian privatisation M&A will pick up in 2013 as the government attempts to modernise the financial market.