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Laxman Pai, Opalesque Asia: Due to challenging economic conditions, the total value of global mergers and acquisitions (M&A) deals dropped significantly in 2022 compared to the previous financial year, said a study.
According to the latest M&A report from GlobalData, 2022 saw a steep decline of 29% in total deal value to $2.8 trillion from the $3.9 trillion reported in 2021.
The report pointed out that the total deals count also fell by 6%, from 39,170 in 2021 to 36,704 in 2022. The market slowdown in 2022 also impacted the number of mega deals worth over $1 billion each.
A total of 497 mega deals were completed, compared to the 835 mega deals reported in 2021, it said.
A notable market trend was the continued dominance of North America in M&A deal activity. In 2022, North America accounted for 40.7% of total global M&A deal value, indicating that the region remains a highly active and influential player in the global M&A market.
"However, all regions, except for the Middle East and Africa and Asia Ex-China, recorded a decline in deal value in 2022 compared to the previous year. This suggests that companies and investors in these regions may have taken a more cautious approach to M&A activity in 2022, due to economic uncertainty and other factors," said the report.
Shri Charan Padala, Principal Analyst, Thematic Intelligence at GlobalData, said: "A combination of factors including higher debt costs, declining equity markets, and economic uncertainty are...................... To view our full article Click here
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