(Finance) – During the first two months of 2024 have been announced globally mergers and acquisitions (M&A) for a total value of 522 billion dollars, 75% more than the value recorded in the same period of 2023, which saw the slowest annual start of operations since 2009. This is what emerges from LSEG Deals Intelligence data.
Nine mega businesseach worth $10 billion or more, were recorded during the first two months of 2024, matching the all-time record set in 2018.
The United States have dominated, with deals involving US targets accounting for 64% of overall global M&A activity during the first two months of 2024, the highest share since the 1980s. U.S. M&A targets totaled $333 billion, a 147% increase over last year and the fourth-highest year-to-date period since the record began in 1980. 88% were domestic deals, which involved a US buyer.
M&A in Europe it totaled $80.4 billion, 88% more than last year, but lower than any January-February total since 2019.
Thanks to the proposed $35.3 billion acquisition of Discover Financial Services from Capital OneThe financial sector was the leading sector, accounting for 18% of global M&A. There technology followed closely, with a 17% stake, with deals including Synopsis’ $32.4 billion bid for the software company Ansys and the $14.0 billion offering of Hewlett Packard Enterprise For Juniper Networks. With the exception of industrials, materials and consumer staples, all sectors saw an increase in the value of mergers and acquisitions compared to last year.
“2023 saw the lowest level of global M&A activity in a decade as continued geopolitical tensions, interest rates, recession fears and stricter antitrust enforcement curbed risk-taking appetite – commented Lucille Jones, Senior Manager of LSEG Deals Intelligence – While many of these obstacles will continue to impact decisions in 2024, and we can add upcoming elections and supply chain issues to the list, there are reasons to be optimistic regarding the conclusion of further agreements this year”.
“A more stable financial environment and the expectation of rate cuts in the coming months have made it easier for intermediaries to evaluate, execute and plan their operations, and the recent improvement in financial markets appears to be stimulating the mergers and acquisitions market – he added – There is also a pent-up demand from buyers and a build-up of assets of sellers after low level activity over the last 18 months.”
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