Economic slump hit M&As by 11.5% to $31.5 bn in 2013
4 Jan 2014 12:14 AM GMT
According to data complied by Thomson Reuters, the number of deals also declined to 12.6 per cent to 967 from 1,107 in 2012. During the fourth quarter of 2013, overall M&As totalled $7.1 billion, a 28.5 per cent sequential increase over Q3, but a decline 29.8 per cent from Q4 year-on-year.
The report also said the average M&A size climbed to $76.1 million, as more deals were announced above $1-billion mark, compared to $73.5 million in 2012. Meanwhile, the economic slump had a larger impact on domestic M&As which plunged 69 per cent to $5.2 billion in the year, which is the lowest since 2004 when it stood at $2.0 billion.
The bulk of domestic activities were on the materials sector with deals worth $1.5 billion being clinched constituting 29.4 per cent of the total domestic M&As, but this again was a massive 75.4 per cent lower that 2012.
However, total across the board, M&As grew a healthy 56.8 per cent to $24.7 billion compared over 2012, driven by a 43.5 and 83.1 per cent increase in the inbound and outbound M&As, respectively. Completed M&A deals involving domestic companies totalled $29 billion, up 49.5 per cent from $19.4 billion in 2012.
Energy and power sectors lead the M&A street with 21.1 per cent market share or worth $6.7 billion, which is a whopping 173.3 per cent increase over 2012.
The second slot was occupied by the healthcare players, capturing 15.8 per cent of the total with $5 billion worth of deals, up 24.5 per cent from the previous year.
The report also said the average M&A size climbed to $76.1 million, as more deals were announced above $1-billion mark, compared to $73.5 million in 2012. Meanwhile, the economic slump had a larger impact on domestic M&As which plunged 69 per cent to $5.2 billion in the year, which is the lowest since 2004 when it stood at $2.0 billion.
The bulk of domestic activities were on the materials sector with deals worth $1.5 billion being clinched constituting 29.4 per cent of the total domestic M&As, but this again was a massive 75.4 per cent lower that 2012.
However, total across the board, M&As grew a healthy 56.8 per cent to $24.7 billion compared over 2012, driven by a 43.5 and 83.1 per cent increase in the inbound and outbound M&As, respectively. Completed M&A deals involving domestic companies totalled $29 billion, up 49.5 per cent from $19.4 billion in 2012.
Energy and power sectors lead the M&A street with 21.1 per cent market share or worth $6.7 billion, which is a whopping 173.3 per cent increase over 2012.
The second slot was occupied by the healthcare players, capturing 15.8 per cent of the total with $5 billion worth of deals, up 24.5 per cent from the previous year.
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