Global mergers and acquisitions (M&A) activities increased 88% in 2020 to $2.3 trillion, representing the strongest second half in history, surpassing previous records held by a 46% increase in H2 1997. I did. In history from the perspective of trading value.
According to research data analyzed and published by Sijoiturahastot, the total number of transactions worth more than $10 billion was less than 21% compared to 2019 figures, while transactions worth between $5 billion and $10 billion were 38 years ago. Increased by %. And their value rose 36%. The total number of so-called “megatrading” (over $5 billion) in 2020 was 116, up from 97 in 2019.
The strong second half almost offset the “disaster” that was H1 2020. This saw a global M&A transaction value totaling $1.2 trillion in the first six months of the year. It fell by 41% in 2019. It was also the first H1 figure since 2013. , the total number of transactions has been suspended by 16%.
For the second consecutive quarter of H2 2020, M&A trading value exceeded $1 trillion, with trading value in the third and fourth quarters being $2.3 trillion. However, the numbers are somewhat misleading as the total number of transactions in 2020 is still down 4%, marking its highest low in four years.
In the US, annual global trading value fell 21% year-on-year from $2.2 trillion in 2019 to $1.4 trillion in 2020. During the peak of the pandemic, the US also saw an 80% drop in M&A activity. Meanwhile, in Europe, this figure rose 34%, as it rose from $735 billion in 2019 to $988.6 billion last year. The Asia-Pacific region similarly increased 15% as the total transaction value increased from $758 billion in 2019 to $871.5 billion.
Technology is a major sector in 2020, recording a 49% increase to $679.2 billion, accounting for a significant 19% of M&A total annually. Finance came in second, with a total trading value of $48.96 billion, down 6% year-on-year, but energy and power accounted for 12% of trading activities despite a 13% year-on-year decline. It was there.
The industry sector totaled $400.6 billion in trading, down 10% in 2019, accounting for 11% of M&A. In contrast, the consumer sector was the most exposed, down 16% at $15.6 billion.
According to EY, the stronger H2 rebounds in global trading are set to last until 2021, with one reason being the “increasing popularity” of special purpose acquisition companies (SPACS) I’m doing it. They argue that these new entities could bring “additional forms of capital” to the market, adding that “alternative trading models such as joint ventures and alliances” could also promote contracts next year.
