Global M&A Value Falls by 15 Per Cent in 2009

Manchester, 7th January 2010 – LawFuel.com – The value of global M&A declined by 15 per cent to USD 3,621 billion in 2009 (FY 2008: USD 4,242 billion; FY 2007: USD 5,610 billion), according to the latest M&A Report from ZEPHYR, the M&A database. It was another difficult year for those involved in M&A and global deal value rescinded at a faster rate than volume, which was down just 2 per cent at 64,981 deals from 66,472 in 2008. Private equity investment declined in every outlined region by both volume and value.

Asia Pacific was the only outlined region for which year-on-year growth in M&A value was recorded. Asia Pacific’s 14 per cent deal value increase to USD 924,642 million (FY 2008: USD 810,232 million) outstripped the year’s 7 per cent volume gain (FY 2009: 21,282 deals; FY 2008: 19,946 deals). Western Europe saw the largest annual decline in M&A value with a 25 per cent deterioration to USD 1,043 billion (FY 2008: USD 1,382 billion) against a 5 per cent decline in volume to 18,386 deals (FY 2008: 19,389 deals). The corresponding value declines in North America and the Rest of the World were 19 per cent and 22 per cent, respectively.

North America accounted for the largest portion of total global M&A value, some USD 1,196 billion, and the majority of this value was recorded for target companies in the US. The USD 1,063 billion total M&A value recorded for the US was more than triple the USD 318,807 million total recorded for second-placed UK. The most important global sectors by value were banking and services, both for private equity and M&A deals.

Other points of interest from the Zephyr 2009 M&A Report include:

Global

Private equity value was down 55 per cent compared to a 39 per cent drop in volume.

The USD 68,000 million purchase of Wyeth by Pfizer was the largest deal by value in 2009.

Western Europe

The UK was the most targeted country by volume and value for M&A and private equity.

Private equity deal value plunged 63 per cent year-on-year, representing the largest value decline of any region outlined in the report for leveraged transactions.

Western Europe’s largest deal by value was the USD 36,240 million bailout of the Royal Bank of Scotland by HM Treasury.

North America

The largest global acquisition of 2009 by value was recorded for a US target, and the US outstripped Canada across the top 20 M&A and private equity deals.

North America’s private equity value more than halved to USD 55,207 million and the year’s largest private equity deal by value – the USD 13,900 million buyout of IndyMac Federal Bank FSB’s banking operations – accounted for a quarter of this total.

Asia Pacific

The largest M&A deal by value targeted China’s Minsheng Banking Corporation and was worth at USD 38,897 million.

Private equity value declined by less than 1 per cent to USD 27,126 million, despite a 47 per cent drop in volume.

Rest of the World

Brazilian and Russian companies were the most frequent targets of high value deals but Kuwait had the largest deal by value, worth USD 13,700 million.

Private equity value rescinded 42 per cent to USD 13,830 million.

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