Mega deals push M&A to record $5 trillion

Sixty-nine merger and acquisition (M&A) deals worth $10 billion or more this year have helped propel global M&A volume to a record $5.03 trillion, according to data provider Dealogic.

The value of M&A in the fourth quarter so far stands at $1.61 trillion, the highest quarterly value on record and about 32% of this year’s total.

However, the number of deals this quarter — 8,481 — is the lowest quarterly total since the third quarter of 2005.

The total value of M&A this year has been driven by 69 $10 billion-plus M&A deals totaling $1.9 trillion, more than double the $864 billion via 36 deals announced in 2014 and the highest annual value on record.

Transactions valued at $50 billion or more also stand at the highest-ever share of global M&A in 2015 (16%) with a combined total of $798.9 billion via 10 such mega deals.

Healthcare has been the most targeted industry for global M&A so far this year with $723.7 billion, up 66% on the $436.4 billion in 2014 and the highest annual level on record.

Technology follows with a record high of $713.2 billion, and real estate third with $457.8 billion.

Pfizer’s proposed $160 billion merger with Allergan, announced on November 23, is the second largest M&A deal ever announced and the largest healthcare deal ever.

Goldman Sachs leads the global M&A advisor ranking in 2015 so far with $1.8 trillion of deals, followed by Morgan Stanley and JPMorgan with $1.53 trillion and $1.5 trillion respectively.

 

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.