GLOBAL STATISTICAL UPDATE – XBMA Quarterly Review for Second Quarter 2014

Executive Summary/Highlights:

  • Global M&A surged in Q2, surpassing US$1 trillion for the first time since the financial crisis, and exceeding the next most active quarter in recent years (Q4 2012) by more than 25%.  Global M&A activity in 2014 is on pace to exceed US$3.5 trillion, approaching the $4 trillion mark reached prior to the financial crisis.
  • Five of the top 10 deals in Q2 were cross-border transactions.  Cross-border M&A activity is on pace to reach$1.4 billion in 2014, representing approximately 40% of overall global deal volume, up from 30% of overall global deal volume in 2013, and 35% in 2012.  The recent high water mark was 45% in 2007.
  • Continued strong corporate performance, industry consolidation, tax inversions, and attractive acquisition currency in the form of acquirer stock are some of the key drivers of the M&A resurgence.
  • A strong Q2 was headlined by megadeals in the Media/Entertainment, Healthcare, and Materials sectors, including AT&T/DirecTV, Medtronic/Covidien, and Holcim/Lafarge.
  • Deal activity in each of North America, Europe, and Asia-Pacific rose sharply in Q2, reaching US$478 billion, US$317 billion, and US$213 billion respectively, while M&A in Japan dipped to US$13 billion.
  • Among BRIC countries, domestic M&A activity in China experienced a particularly strong surge in Q2, exceeding US$90 billion.

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