4Q 2012 saw surge in M&A, say mergermarket
21 February 2013 London
Image: Shutterstock
A lull in European dealmaking in the first nine months of 2012 was offset by a surge of M&A in the fourth quarter, with volumes up by 5.4 percent and value up by 88.9 percent.
mergermarket, an M&A intelligence and data provider said that the value of deals was the highest since Q4 2010, with the increased activity supported by improved confidence about the Eurozone.
Dealmaking continues to reflect the dynamics of the Eurozone crisis, with the Nordics and relatively stable markets Central and Eastern Europe dominating deal flow alongside a more subdued Southern Europe, the firm added.
Most sectors registered a decline in full year M&A activity by value, with the overall figures rescued by a 31 percent surge in the value of energy mining and utilities deals, supported by the €34.4 billion all share merger of Xstrata and Glencore.
Industrials and chemicals was another active sector during 2012, accounting for 14.1 percent of deals by value and 22.3 percent by volume.
Buyouts in the private equity sector proved relatively muted in 2012, with a total of 877 deals worth €70.7 billion compared to 1,105 worth €78.6 billion in 2011, and exits in 2012 were also down on the previous year, with 542 deals worth €84.9 billion compared to 655 worth €93.7 billion in 2011.
Sarah Syed, private equity correspondent at mergermarket said: “Global economic uncertainly has hindered the M&A market since the Lehman crash and 2012 was no exception to this rule. On a positive ending to the year, however, deal flow picked up—a trend that dealmakers are hoping will trickle into 2013. Opportunistic M&A and consolidation looks most likely for the year ahead with some even hoping for further mega buys following the buyouts of Dell and Heinz.”
mergermarket, an M&A intelligence and data provider said that the value of deals was the highest since Q4 2010, with the increased activity supported by improved confidence about the Eurozone.
Dealmaking continues to reflect the dynamics of the Eurozone crisis, with the Nordics and relatively stable markets Central and Eastern Europe dominating deal flow alongside a more subdued Southern Europe, the firm added.
Most sectors registered a decline in full year M&A activity by value, with the overall figures rescued by a 31 percent surge in the value of energy mining and utilities deals, supported by the €34.4 billion all share merger of Xstrata and Glencore.
Industrials and chemicals was another active sector during 2012, accounting for 14.1 percent of deals by value and 22.3 percent by volume.
Buyouts in the private equity sector proved relatively muted in 2012, with a total of 877 deals worth €70.7 billion compared to 1,105 worth €78.6 billion in 2011, and exits in 2012 were also down on the previous year, with 542 deals worth €84.9 billion compared to 655 worth €93.7 billion in 2011.
Sarah Syed, private equity correspondent at mergermarket said: “Global economic uncertainly has hindered the M&A market since the Lehman crash and 2012 was no exception to this rule. On a positive ending to the year, however, deal flow picked up—a trend that dealmakers are hoping will trickle into 2013. Opportunistic M&A and consolidation looks most likely for the year ahead with some even hoping for further mega buys following the buyouts of Dell and Heinz.”
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