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Laxman Pai, Opalesque Asia: Global merger and acquisition (M&A) activity has weakened in the first quarter of 2022 with total transaction value dropping to $725 billion-almost 23% lower than Q4 2021, said a study.
According to GlobalData, this is a sign that activity is going back to 'normal', after the staggering growth seen in 2021.
The report notes that a total of 9,207 M&A deals were announced in Q1 2022, representing a drop of 10% from the previous quarter. Meanwhile, the number of mega-deals (valued greater than $1 billion) fell by a third.
Sectors such as technology, media and telecoms (TMT), apparel, banking and payments, construction, and food service all recorded a drop in terms of M&A deal value. The one exception was the packaging sector, which witnessed a growth of 32% in Q1 2022, and from Q1 2021.
M&A deal activity has seen a dismal start to 2022, with activity in Q1 registered lower than every quarter in 2021. This is largely due to the dissipation of the COVID-19-driven boost to deal-making and the broader economic outlook, said the report.
Snigdha Parida, an analyst on the Thematic Research team at GlobalData said: "We will now start seeing things return to 'normal'. Looking at the current mix of macro-economic conditions, geopolitical uncertainty, supply chain disruptions, and other factors, deal-making in the coming quarters of 2022 will continue to face significant challenges."
Bobby Verghese, the Packaging Analyst at GlobalDat...................... To view our full article Click here
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