|
By Matthew Quinn
The value of all announced global mergers and acquisitions in the first quarter totaled $573 billion, up 20.5 percent from a year earlier, according to data from Thomson Reuters. However, deal-making lost some of the momentum it closed out 2009 with, as activity was down 5 percent from the fourth quarter of 2009, when $602 billion worth of deals were struck.
Emerging markets and cross-border deals were particularly prevalent in the first quarter. Deals involving companies located in emerging markets totaled $183 billion, more than double the activity announced a year earlier. Cross-border M&A activity totaled $209 billion during the quarter, accounting for 37 percent of all volume, compared to 23 percent a year earlier. The largest deal so far this year was a cross-border deal -- UK-based Prudential's $35.5 billion acquisition of AIG's Hong Kong-based AIA Group.
The biggest deal involving a US company is Simon Property Group's $30 billion bid for bankrupt mall operator General Growth Properties. The largest agreed to deal was MetLife's $15.5 billion acquisition of AIG's American Life Insurance Co.
By sector, energy and power was the most active, commanding 20 percent of announced M&A. The biggest deal in the sector was Schlumberger's $12.2 billion acquisition of Smith International. Financials and real estate sectors accounted for 18 percent and 12 percent of M&A activity, respectively.
Private equity was able to get back in the game, announcing $32.4 billion worth of deals, up 89 percent from the first quarter of 2009.
According to estimates from Thomson Reuters/Freeman Consulting, M&A advisory fees from completed transactions totaled $5.5 billion for the first quarter of 2010, up 19 percent from a year earlier.
 |
in CFO Conversations by 
Subscribe to this comment's feed
