Rediscovered appetite for M&A
Global mergers and acquisitions activity has been boosted by 26 per cent in the first quarter of 2011. US companies have returned to large strategic deal-making and helped this trend strengthened.
US M&A activity jumped 84 per cent to $267bn in the first three months of the year, compared to the same period in 2010. The US now accounts for almost half of global activity, up from about a third last year.
Nine of the 10 biggest deals this year have been struck in the US, suggesting confidence among American chief executives and boards has bounced back faster than elsewhere. US executives believe the economic recovery is gaining momentum. Duke Energy planned $26bn tie-up with Progress Energy, creating the country’s largest utility. Berkshire Hathaway in March agreed to buy chemicals company Lubrizol for $9bn and is seeking bigger targets to generate growth .
Deals involving companies from Brazil, Russia, India and China accounted for 12.6 per cent of global activity. Five years ago, Asian companies begin to get involved in looking at cross- border deals and gradually building their transaction skills. Today, there has been a shift of dealmaking inbound into Europe from China, India and Brazil.
Overall, however, emerging market activity fell about 14 per cent , although last year’s figures were boosted by Carlos Slim’s $34bn restructuring of his Mexican telecoms empire.
Europe had a quieter quarter in M&A, with activity up about 27 per cent to $162bn.
US M&A activity jumped 84 per cent to $267bn in the first three months of the year, compared to the same period in 2010. The US now accounts for almost half of global activity, up from about a third last year.
Nine of the 10 biggest deals this year have been struck in the US, suggesting confidence among American chief executives and boards has bounced back faster than elsewhere. US executives believe the economic recovery is gaining momentum. Duke Energy planned $26bn tie-up with Progress Energy, creating the country’s largest utility. Berkshire Hathaway in March agreed to buy chemicals company Lubrizol for $9bn and is seeking bigger targets to generate growth .
Deals involving companies from Brazil, Russia, India and China accounted for 12.6 per cent of global activity. Five years ago, Asian companies begin to get involved in looking at cross- border deals and gradually building their transaction skills. Today, there has been a shift of dealmaking inbound into Europe from China, India and Brazil.
Overall, however, emerging market activity fell about 14 per cent , although last year’s figures were boosted by Carlos Slim’s $34bn restructuring of his Mexican telecoms empire.
Europe had a quieter quarter in M&A, with activity up about 27 per cent to $162bn.
Labels: Merge and acquisition
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