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Global M&A volume crosses $2 trn landmark

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 5:24 AM IST

The global merger and acquisition volume has crossed the $2 trillion landmark so far this year, with emerging market deals accounting for nearly one third of the total pie, a report says.

According to leading deal tracking firm Dealogic, in the first nine months of this year, global M&A volume totalled $2.03 trillion and the emerging market volume reached $653.2 billion, wherein India's share was $56.7 billion.

"Emerging market M&A accounted for 32 per cent of global M&A volume in the first nine months of 2010, the highest percentage on record," the Dealogic M&A Review said.

Emerging market volume reached $653.2 billion in the first nine months of 2010, and exceeded European M&A for the first time on record, it added.

In India, merger and acquisition volume reached a first nine month record of $56.7 billion so far this year. Inbound deals contributed significantly, with the volume totalling $24.8 billion.

During the first nine months of 2010 cross border volume reached $764.5 billion through 7,352 deals, up 67 per cent from $456.8 billion via 6,036 deals in the first nine months of 2009.

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Emerging markets accounted for 33 per cent with $252.5 billion. Bharti Airtel's $10.7 billion acquisition of Zain Africa was the largest Indian outbound deal of 2010 and the second largest on record.

The Asia Pacific targeted M&A volume reached $449.1 billion in the first nine months of 2010, wherein outbound deals contributed nearly half, with M&A volume totalling a record $214.9 billion in the first nine months 2010.

China was the top targeted nation with $137.4 billion, up 14 per cent from the same period last year. China was the third largest acquiring nation by volume globally just behind the US and the UK.

A sector-wise analysis shows that finance and oil and gas attracted the maximum deals with M&A transactions totalling $229.5 billion through 2,629 and 1,213 deals respectively, followed by telecom ($206 billion), healthcare ($178 billion) and real estate ($135.2 billion).

Goldman Sachs was the top advisor for both the US and the global M&A deals announced during the first nine months of this year while JP Morgan led in Europe and Bank of America Merrill Lynch was top in Asia Pacific (excluding Japan), the report said.

In India, Rothschild was the top adviser with $28.2 billion, followed by Bank of America Merrill Lynch and Standard Chartered with $25.3 billion and $22.3 billion, respectively.

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First Published: Oct 04 2010 | 4:43 PM IST

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