According to Mergermarket's December insider, November 2015 was a record
setting month for M&A activity. By the end of the month, global
M&A value reached US$3.9tn which surpassed the 2007 full year
record by almost 6%. This record came on a drop in volume by 1,228
transactions which further cements 2015 as
the year of the mega deal. The top sector was Pharma, Medical
& Biotech (PMB) with 84 transactions
representing US$201.3bn. The driver behind this sector was the
record breaking US$183.7bn Pfizer Inc.'s bid for Allergan PLC.
This represented over 90% of PMB's total deal value and set
helped solidify the record breaking year.
The North American market followed suit and also set a new
record for annual deal value (US$1.9tn) surpassing the 2007 mark by
US$400bn with a month still remaining in the year. The
Pfizer/Allergan deal helped propel the highest outbound deal value
ever at US$455.1bn. Even more surprising is that inbound value was
the second highest ever, falling US$40bn short of the 2007 record.
The top performing sector was the financial services sector with 44
deals worth US$30.4bn a new record for the sector and an increase
of 450% over November 2014. Overall 2015 was a very strong year for
M&A activity in North America and there are no signs of slowing
down in 2016.
Europe was not to be left behind in the record setting year.
With a deal value of US$369.2bn, November 2015 was
Mergermarket's highest ever recorded for Europe and a 400%
increase over 2014. However, over 80% of the value came from two
mega deals: the previously mentioned US$184bn Pfizer/Allergan deal
and a US$120.3bn acquisition of SABMiller PLC by Anheuser-Busch
InBev NV. While these deals provided a much needed boost (over 470%
over 2014) of inbound M&A to Europe the outbound value dropped
almost 55% compared to November 2014. The cause is likely to have
been the strong devaluation of the Euro due to the latest round of
Quantitative Easing in Europe. Nevertheless 2015, was still a
strong year for Europe with a 17% increase over 2014's
US$897.4bn in deal value with a considerable total of 1,190 less
By comparison, M&A in Central & South America showed
much weaker signs. Total deal value was down 67.6% and the number
of deals was cut in half compared to 2014. This is due in part to
deteriorating economic forecasts, and increasing political risks
associated with certain emerging markets. While this may not bode
well for traditional commodity investors, the consumer sector has
been on the rise. Total deal value rose 705% to $2.2bn over the
previous year, thanks in large part to the US$1bn acquisition of
Brazilian consumer goods company Hypermarcas SA by US based Coty
Inc. Interestingly Mexico is slowly becoming the best performing
emerging economy, mainly due to growing trading opportunities, and
2015 saw much needed success for Japan. Deal value to date has
hit US$52.9bn, up 73.4% compared to YTD 2014. November saw US$6.1bn
worth of deals which is a significant rise of 22% over November
2014. A strong sign for the economy was that the financial services
sector was the top sector with 3 deals accounting for 66% of total
deal value in November. Another strong sign is Japan's outbound
M&A transactions continually ramped up even after exceeding the
2014 annual total earlier this September. Overall Japan still has a
long way to go in its economic recovery; however, a rejuvenating
domestic market has made 2015 a new momentum year for M&A.
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
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
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
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).