The Strategist

Global M&A market exceeds $1T in Q3, hits record



10/01/2020 - 03:34



In the third quarter, the volume of mergers and acquisitions (M&A) in the world exceeded $ 1 trillion, thus turning out to be a record since 1998, when the publication of such information began. This is the data of the research company Refinitiv, quoted by Reuters.



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The increase in comparison with the second quarter, when the number of transactions significantly decreased with the spread of the pandemic and the introduction of quarantine measures in different countries, amounted to 80%.

The number of large transactions (more than $ 5 billion) in the third quarter was 36, their total amount reached $ 455.7 billion - this is also a record figure. Despite good results for the second quarter, the numbers for the first nine months are still lagging behind 2019 - a decline of 21%, the total amount of M&A for this period is $ 2.2 trillion.

The volume of M&A in the United States in the third quarter increased three times compared to the second quarter, to $ 414 billion, in the Asia-Pacific region, growth was 67%, to $ 274 billion, in Europe - 21%, to $ 231 billion.

Among the major deals in the third quarter are the purchase by Nvidia of the British processor manufacturer Arm Holdings from Softbank for $ 40 billion and the acquisition by the German Siemens Healthineers of the American pharmaceutical company Varian for $ 16.4 billion.

According to experts, the growth in the third quarter is due both to the resumption of many transactions that were frozen with the outbreak of the pandemic, and to the fact that many companies are strengthening their businesses in the current crisis through consolidation.

source: reuters.com