After a slow start, global mergers and acquisition activity should pick up in the second half of the year, according to Oxford Analytica.
Global merger and acquisition (M&A) volumes totalled 102.9 billion dollars in the four initial weeks of 2012, the weakest level since 2003, according to S&P Capital IQ and Dealogic.
During the first two quarters of 2011, global M&A deals reached a value of 1.27 trillion dollars, a 34% increase over deal values for the same period in 2010. However, in the last two quarters this fell 875 billion dollars, a 29% year-on-year drop.
The M&A outlook this year hinges critically on the future of the euro-area.
If the crisis is contained, trends seen during the first half of 2011 will resurface. However, in a worst-case scenario of a disorderly default leading to bank failures and a global double-dip recession, M&A activity would slide back towards 2008 levels.
Given global uncertainty, trends seen in the second half of 2011 will continue into the first half of this year. However, M&A deals are set to gain some momentum in the second half of this year, especially if the euro-area crisis is contained.
- The number of cross-border deals is likely to be higher than in 2011.
- More acquirers will come from the emerging markets, while North America and Europe will be the most attractive target regions.
- There will be strong interest in the upstream oil and gas industry — with a special focus on shale gas — as well as natural resources such as copper, iron ore, coking coal and other mining activities.
For details, see M&As set for moderate recovery in 2012
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here