Global M&A value at lowest point since 2004

Zephyr reports on M&A and private equity activity in H1 2010
Click here to see the full H1 2010 Global M&A Report
 
Global: page 1-14
Western Europe: page 15-27
North America: page 28-40
Asia Pacific: page 41-54
Middle East: page 55-65
 
Global mergers and acquisitions activity reached the lowest half-yearly level since before the onset of the financial crisis in H1 2010, according to the latest M&A Report from Zephyr, the M&A database. The value of global deals declined by 17 per cent to USD 1,478 billion from USD 1,780 billion in H2 2009 (H1 2009: USD 1,985 billion). Deal volume also fell by 17 per cent, to 30,034 transactions from 36,001 in H2 2009.
 
The total global deal value of USD 1,478 billion was the lowest half-yearly result since USD 1,250 billion was recorded in H2 2004. A drop in total deal value was recorded for Western Europe (30%), Asia Pacific (37%) and the Middle East (38%), while a 6 per cent gain was recorded for North America. On a global scale, gains made during the peak of M&A activity in 2007 have now been erased.
 
North America was the only region for which growth in the value of private equity investment was recorded during the six months to June 2010, with an increase of 14 per cent from USD 37,863 million to USD 43,104 million in H2 2009 (H1 2009: USD 28,612 million). Overall global private equity deal value fell by 11 per cent to USD 60,739 million from USD 68,513 million in H2 2009 (H1 2009: USD 52,435 million).
 
The most important global sectors by value for M&A deals were banking (USD 242,343 million) and services (USD 221,935 million). The services industry accounted for the largest proportion of global private equity investment (USD 22,001 million), followed by machinery, equipment and furniture (USD 6,385 million).
 
Middle East
The value of M&A activity targeting the Middle East fell by 38 per cent in H1 2010 despite an 86 per cent increase in volume, highlighting the extent to which value has been stripped from deals in the region. A total of USD 11,912 million was recorded for the six months; a result that erased gains made in H2 2009 and put deal value back at H1 2009 levels. This was despite volume being back at a pre-crisis total of 229.