Posted on

North American M&A activity slump in Q4 2019

The North America region witnessed a slump in mergers and acquisition (M&A) deal volume in the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.

M&A activity within the North America region witnessed a down trend, with the region experiencing a decrease from 3,149 M&A deals in Q4 2018 to 2,851 M&A deals in Q4 2019. The region also witnessed a decline in M&A deal value in Q4 2019 compared to Q4 2018. The decline in deal volume and value could be attributed to weak activity in the US.

Notable M&A deals announced during Q4 2019 in North America included; the merger of International Flavors & Fragrances with DuPont Nutrition & Biosciences for US$26.2bn, the acquisition of TD Ameritrade by Charles Schwab for US$4bn, and the acquisition of Tiffany by LVMH Moet Hennessy Louis Vuitton for US$16.2bn, among others.

North America M&A Activity Analysis-Q4 2019

IMAGE FOR PUBLICATION: Please click here for enlarged chart

The US topped the North American region in M&A deal activity with 2,479 deals accounting for 87% of the total deals announced during Q4 2019. However, it witnessed a decline in deal volume and value during Q4 2019 compared to Q4 2018.

In contrast, Canada reported growth in deal value in Q4 2019 despite registering a decline in M&A deal volume from 466 deals in Q4 2018 to 372 deals in Q4 2019.

The oil & gas sector accounted for 24% of the top 50 deals in North America during Q4 2019 followed by the technology sector, which accounted for a 20% share and was distantly followed by the food and power sectors, with each accounting for an 8% share of these deals.

Some of the top deals in the oil & gas sector during Q4 2019 included the acquisition of 78.3% stake in EnLink Midstream Partners by EnLink Midstream for US$8.6bn and the acquisition of Newfield Exploration by Encana for US$7.7bn.

Source: GlobalData

Posted on

Global M&A activity remained subdued in Q4 2019

Global mergers and acquisitions (M&A) activity remained subdued with a decline registered both in deal volume and value in the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.

Total M&A volume and value declined by 0.6% and 4.5% in Q4 2019 compared to Q4 2018, respectively. The decline could primarily be attributed to underperformance in the North American region, which witnessed decline in deal volume from ~3,000 deals in Q4 2018 to ~2,800 deals in Q4 2019. The region also witnessed a decrease in deal value by around 13% in Q4 2019 compared to Q4 2018.

Global M&A Actitivity Analysis - Q4 - 2019

Image for publication: Please click here for enlarged image

The Middle East and Africa were the other regions to witness a decline in both deal volume and value by ~15% and ~40% in Q4 2019 compared to Q4 2018, respectively.

On the other hand, the South and Central America regions saw growth in value worth US$20.16bn in Q4 2019 compared to US$18.21bn in Q4 2018. However, it did not show improvement in volume, which declined from 290 M&A deals in Q4 2018 to 247 M&A deals in Q4 2019.

Amidst underperformance of several regions, Asia-Pacific and Europe emerged as the top performers for M&A activity.

Asia-Pacific witnessed growth in M&A deal volume and value by ~20% and ~10% in Q4 2019 compared to Q4 2018, respectively.

Moreover, Europe witnessed a slight growth from ~2,000 M&A deals worth ~US$118bn in Q4 2018 to ~2,100 M&A deals worth ~US$130bn in Q4 2019.

Some of the notable M&A deals announced during Q4 2019 included the acquisition of TD Ameritrade by Charles Schwab for US$26bn, the acquisition of Tiffany by LVMH Moet Hennessy Louis Vuitton for US$16.3bn, and the acquisition of Liberty Property Trust by Prologis for US$12.6bn, among others.

Source: GlobalData

Posted on

Goldman Sachs leads GlobalData’s top 10 global M&A financial advisers league table in North America

Goldman Sachs has dominated the latest mergers and acquisitions (M&A) league table of the top 10 financial advisers in North America based on deal value in 2019, according to GlobalData, a leading data and analytics company.

The American investment bank advised on 204 deals worth US$748.4bn.

According to GlobalData, which tracks all M&A, private equity/venture capital and asset transaction activity around the world to compile the league tables, Morgan Stanley ranked second with 133 deals worth US$593.0bn.

Ravi Tokala, Financial Deals Analyst at GlobalData, comments: “Despite a spike in North American targeted megadeals (>US$10b), the region saw a 7% decrease in total deals value in 2019 over 2018. Almost all top 10 legal and financial advisors participated in these megadeals, which were instrumental in deciding legal and financial advisor league table rankings in North America.”

Image

IMAGE FOR PUBLICATION: Please click here for enlarged chart

North America deals market in 2019

The deal volume in North America saw an increase of 17.97% from 22,313 in 2018 to 26,323 in 2019. Deal value declined by 7.03% from US$1812.9bn in 2018 to US$1685.5bn in 2019.

Goldman Sachs, which topped the league table of M&A financial advisers in North America, also claimed top position in GlobalData’s recently released global league table of top 20 M&A financial advisers.

Wachtell, Lipton, Rosen & Katz leads top 10 M&A legal advisers list

Law firm Wachtell, Lipton, Rosen & Katz emerged as the lead player in the list of top 10 legal advisers, in terms of deal value. It advised on 72 deals worth a combined US$591.1bn. Kirkland & Ellis occupied second position in terms of value, advising on 492 deals worth US$450.6bn. In the global league table of top 20 M&A legal advisers, Wachtell, Lipton, Rosen & Katz secured number one position.

Source: GlobalData