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Laxman Pai, Opalesque Asia: As corporates took advantage of improving M&A conditions, private equity megadeals surged in 2024, revealed a study.
Private equity firms announced or completed 18 megadeals valued at $5 billion or above in 2024, more than double the prior-year total and the fourth-highest annual tally of PE-backed megadeals since at least 2000, according to S&P Global Market Intelligence and Preqin data.
Nine of the 18 private equity megadeals announced or completed in 2024 targeted companies headquartered in the US or Canada. Europe followed close behind with eight, a performance boosted by robust take-private activity in the UK.
Topping the list was the $16.3 billion acquisition of drug manufacturer Catalent Inc. by Novo Holdings A/S, the private equity and venture capital arm of Novo Nordisk Fonden.
The raft of super-sized private equity deals arrived amid a broader recovery in PE-backed M&A, which recorded a nearly 25% year-over-year increase in value in 2024 after two consecutive annual declines.
Pete Witte, global private equity lead analyst for EY, said: "The mood of PE dealmakers appeared to improve throughout 2024 as interest rates fell and buyers and sellers began to find common ground on asset valuations. Measures of [PE] sentiment have been fairly high, and they got higher as the year wore on."
Another tailwind to PE dealmaking in 2024 was the growing pressure on PE fund managers to put more of their dry powder to work,...................... To view our full article Click here
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