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Alternative Market Briefing

Global M&A activity nosedives towards the end of Q1 2020

Tuesday, April 28, 2020

Laxman Pai, Opalesque Asia:

The global mergers and acquisition (M&A) deal volume and value started declining with the first quarter (Q1) of 2020 approaching the end, said a study.

According to GlobalData the number of announced M&A deals decreased from 2,349 in February 2020 to 1,984 in March 2020, whereas the corresponding deal value also decreased from US$151.2bn to US$129.9bn.

All regions witnessed a decline in deal volume and value except for the Asia-Pacific (APAC) and South and Central America, which witnessed growth in deal value, said the data and analytics company.

"Although in terms of value, the APAC and South and Central America regions showcased growth in Q1 2020, it was only due to these regions witnessing the announcement of one high-value deal each," said Aurojyoti Bose, Lead Analyst at GlobalData.

"The announcement of an acquisition of Tesco's operations in Thailand and Malaysia by Charoen Pokphand for US$10.6bn raised the total value for the APAC region while the announcement of the acquisition of PartnerRe by Covea for US$9.05bn soared the deal value for South and Central America during March. Excluding these, the deal value in these regions also declined," Bose said.

The number of M&A deals worth more than or equal to US$100m decreased to 96 in March 2020 against 168 deals in February 2020. In North America, Europe, APAC, Middle East and Africa, and South and Central America regions, the number of deals worth more than or equal ......................

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