In its Global M&A Review, for the first nine months of 2015, Thomson Reuters reports healthy global M&A activity leading into the final quarter of fiscal 2015. The study reports increases in both deal value and deal volume across most jurisdictions and industry sectors.
Global increase in both deal volume and deal value
Thomson Reuters reports that global M&A has experienced its strongest first nine months since fiscal 2007. Year-to-date, global M&A topped US$3.2 trillion on just under 32,000 deals. Compared to the same nine month period in 2014, this represents a 32% increase in deal value and a 2% increase in deal volume. Large deals have featured prominently this year. There has been a 96% increase in the number of deals with value over $10 billion, which accounted for 36% of announced M&A value.
Although the pace of global M&A slowed somewhat in Q3 2015, down 17% by value and 16% by volume compared to Q2 2015, Thomson Reuters reports that this is the first time in over a decade where there has been consecutive quarters each valued at greater than a trillion dollars.
Cross-border M&A continues to be a driver of M&A activity, accounting for 35% of overall M&A volume, an 18% increase over 2014. This is a continuing trend from 2013, albeit a more modest increase compared to the 99% increase from 2014 over 2013.
Increased activity across certain industry sectors
The report notes increases in global M&A in oil and gas, energy and power, healthcare, and technology. Deal value in energy and power increased by 20% year-over-year, totaling $476.1 billion. Global M&A in healthcare increased 76%, while in technology it increased 44%.
Strong activity south of the border; mixed results in Canada
The report notes a healthy increase in M&A activity in the United States during the first nine months of 2015. U.S. M&A value increased 46% year-over-year, with total deal value of $1.5 trillion, while M&A volume increased 33.3% year-over-year, on account of 11,878 announced deals.
In terms of completed M&A in the first three quarters of the year, Canada saw an increase in deal value from $66.1 billion to $72.7 billion, primarily as a result of increased deal size year-over-year. Deal volume was actually lower in Canada over the period measured, decreasing from 1,014 to 860 year-over-year.
The author would like to thank Sam Zadeh, articling student, for his assistance in preparing this legal update.
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