London, 2nd October 2018: Mergermarket, leading M&A data and intelligence provider, has released its Q3 2018 Global M&A Report with financial advisor league tables. According to the new research, Q3 saw subdued M&A activity as growing geopolitical tensions and trade wars dampened spirits and caused corporates to pause over the summer.
Q3 saw the lowest quarterly value (US$ 703.2bn) since Q1 2016 (US$ 627.9bn) and 35.4% lower than Q2 (US$ 1.09tn). However, despite the quarterly drop in activity, 2018 has so far registered the second highest value on record (US$ 2.72tn across 13,575 deals) behind 2007 (US$ 2.94tn).
Domestic M&A increased by 30.6% on YTD 2017 to US$ 1.67tn – its highest YTD value on record. Once again, the US dominated global M&A, drawing in 47.5% of the global Q3 value, almost seven percentage points higher than that seen in 2017 (40.9%), with US$ 333.9bn announced in Q3. The consumer sector, on the other hand, following a stellar 2017 (US$ 380.8bn, 2248 deals), has not managed to reach those heights so far this year (US$ 181.4bn, 1,409 deals) – despite the Coca-Cola/Costa and PepsiCo/Sodastream acquisitions. However, the Energy, Mining & Utilities (EMU) sector continues its winning streak, recording the fifth consecutive quarter over US$ 100bn. The US$ 194.9bn announced in Q3 represented the highest quarterly value in the sector since Q4 2016 (US$ 250.5bn).
“With macro events playing a larger role in steering M&A this year, companies have continued looking closer to home instead of conducting high-profile cross-border deals. As tariffs introduced by the US and China and political protectionism creep further into deal-making considerations, advisors are having to contend with much harsher conditions,” commented Jonathan Klonowski, Research Editor EMEA at Mergermarket.
Goldman Sachs & Co led the financial advisor rankings by value having advised on 276 deals worth US$ 827.1bn up 42.4% by value compared to US$ 580.8bn.
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