GLOBAL STATISTICAL UPDATE – XBMA Quarterly Review for Third Quarter 2014

Executive Summary/Highlights:

  • Global M&A volume in Q3 was US$888 billion, marking the second strongest quarter since 2008, exceeded only by Q2 2014. If deal volume continues at this level, global M&A activity for 2014 would exceed US$3.5 trillion, the highest annual volume since 2007.
  • Deal volume for the first three quarters of 2014 has surged more than 50% over the same period last year. Cross-border M&A activity is on pace to reach US$1.4 trillion in 2014, nearly twice the volume of 2013.
  • Hostile or unsolicited deals in the first three quarters of 2014 increased to approximately US$550 billion (up 367% over the same period in 2013).
  • Strong corporate earnings, continued large cash balances being carried at virtually zero return, attractive financing for most corporate borrowers, generally high stock prices, all of which support and drive accretion – often very substantial – in strategic acquisitions, together with a focus on industry consolidation and growth through acquisition have continued to drive substantial M&A activity in Q3, despite some regional tensions and concerns about growth in certain economies.
  • Q3 was led by megadeals in the Energy & Power, Telecommunications, and Retail sectors, including the Kinder Morgan pipeline deals, AbbVie/Shire, and Burger King/Tim Hortons.

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