Boost for global M&A figures
Merger and acquisition activity looks poised for a rebound. According to research by Dealogic, global M&A volume has increased 47% in the first half of 2004 compared to the first half of 2003. The value of global completed transactions for 2004 to date is $941.8bn. Despite the ongoing uncertainties facing industries around the world, the M&A market seems to be well equipped to face the challenges and changes within the economic environment. The figures for Europe, Middle East and Africa (EMEA) regions mirror a similar trend, boasting an increase of 13% in M&A value, but a decrease of 2% in revenue. The Asia-Pacific target deal value increased 29% to $156.2bn. The US tops the M&A list with deals worth $467.2bn; a huge increase of 97%.
The figures are not completely representative. The numbers have been heavily influenced by the inclusion of a few very big deals, including the tie-up between Sanofi-Synthelabo and Aventis for $74bn, the JP Morgan Chase and Bank One deal, worth $58bn, and the Cingular and AT&T get-together, valued at $41bn.
The largest pending UK transaction is currently Royal Bank of Scotland's bid for Charter One Financial in the US for $10bn which was announced in May.
Elsewhere Goldman Sachs tops the latest M&A global and European rankings, with Morgan Stanley close behind, jumping from its tenth place ranking in 2003 to third place this year.