Global M&A deal tally hits $3.1 trillion in 2016

Global merger and acquisition activity has soared to $3.1 trillion so far this year -its third highest since 2007 -even as deal value saw over 22 per cent decline over last year, says a report. According to global deal tracking firm Mergermarket, despite a series of "political shockwaves", global M&A activity till date amounted to $3.1 trillion, through 16,194 deals. The M&A deal tally so far this year registered a 22 per cent decline in value terms and 10 per cent fall in number of transactions over last year. Last year, the global deal tally stood at $3.9 trillion. However, global M&A activity till date of $3.1 trillion managed to reach its third highest deal value since 2007, when transactions worth $3.7 trillion were announced. The report noted that October 2016, marked the peak of yearly M&A activity, with 1,362 deals worth $454.3 billion representing the highest monthly deal value since May 2007 when $546.7 billion transaction were announced. The year 2016 witnessed just 38 big ticket transactions (worth more than $10 billion) aggregating to $911.5 billion. In the corresponding period last year there were 57 such deals worth $1.5 trillion. Going forward, "the outlook for 2017 remains uncertain", Mergermarket said, adding that "with Brexit negotiations, the nature of Trump's Presidency as well as the French and German elections, all under question". Sectorwise, energy, utility and mining attracted deals worth $582.8 billion by way of 1,351 deals, followed by Industrials and chemicals ($498.5 billion, 3,056 deals) and technology ($401.4 billion, 2,115 deals). The report further noted that Chinese dealmakers engaged in 242 deals worth $171 billion outside of Asia, 3.5 times higher than 2015's previous record value. The US dealmaking accelerated towards the end of the year, with a flurry of mega deals (AT&T/Time Warner, Level 3/Century Link, Energy Transfer/Sunuco) bumping up the deal value, it added.