ARTICLE
11 February 2015

M&A Trend Summary: H2 2014

NR
Norton Rose Fulbright Canada LLP

Contributor

Norton Rose Fulbright Canada LLP logo
Norton Rose Fulbright is a global law firm providing the world’s preeminent corporations and financial institutions with a full business law service. The firm has more than 4,000 lawyers and other legal staff based in Europe, the United States, Canada, Latin America, Asia, Australia, Africa and the Middle East.
Overall, there were 16,588 reported deals in the second half of 2014 worldwide, worth roughly $3.2 trillion; this surpasses the previous record, in the second half of 2007, of 16,060 transactions, worth roughly $3.7 trillion.
Worldwide Corporate/Commercial Law

MergerMarket Group recently published its January edition of Monthly M&A Insider which reported on mergers and acquisitions activity around the world during the second half of 2014. Among other things, the report explains why 2014 was so hospitable to M&A activity, citing an improving economy, large cash reserves, low interest rates, and cheap financing as contributing factors.

M&A worldwide

Overall, there were 16,588 reported deals in the second half of 2014 worldwide, worth roughly $3.2 trillion; this surpasses the previous record, in the second half of 2007, of 16,060 transactions, worth roughly $3.7 trillion. Just under half of the total value of transactions were based in North America, with one-quarter based in Europe. In terms of volume, one-third of deals were based in North America, roughly two-fifths of deals were based in Europe, and just under one-quarter were based in Asia. The industries with the highest value of deals were, in order, Energy, Mining & Utilities (24.2%), Consumer (12.2%), and Industrials & Chemicals (12.0%). The industries with the highest volume were, Industrials & Chemicals (19.1%), Business Services (13.2%), and Consumer and Technology (tied, 11.8%). 

M&A in North America

With respect to North American markets, the Industrials & Chemicals sector was the most active participant in M&A transactions, with 432 deals worth $92.6 billion, but the Energy, Mining & Utilities industry had the highest value, with 353 deals worth $248 billion. The biggest gains were seen in the Leisure industry, with a year-over-year increase of 302% (from $9 billion to $36 billion); the greatest decline was in Telecommunications, from $137.2 billion to $10.6 billion.

Private equity

In the private equity space, there were 2,099 transactions globally worth $489.6 billion, easily surpassing the 2007 high of 1,794 deals worth $403 million. In terms of the highest value of exits, the top three firms were Blackstone Group ($8,100 million, with 1 deal), Apollo Global Management ($6,631 million, with 3 deals), and Thomas H. Lee Partner ($4,000 million, with 1 deal).

Stay informed on M&A developments and subscribe to our blog today.

Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More