Firms ‘future-proofing’ themselves through M&A deals

Global merger and acquisition (M&A) activity in the first half of 2017 increased 8.4 per cent by value, despite 1,117 fewer deals compared with the same period last year. Deal value in the six months to June amounted to $1.49 trillion across 8,052 transactions. In the same period last year, 9,169 M&A transactions worth $1.38 trillion were recorded. Firms have been looking at ‘future-proofing’ themselves in the backdrop of rapid technological and political changes as they seek to stay ahead of rivals. The first half of the year saw 17 megadeals (greater than $10 billion), versus 14 such deals in the first half of 2016. In comparison with the first half of 2016, Asia-Pacific’s outbound deal value declined by 58.1 per cent to $55.7 billion across 268 transactions. Tightened outbound M&A controls imposed by Chinese regulators dampened the deal flow from China (112 deals, $35.5 billion), impacting large-ticket deals. China, which accounted for 49.1 per cent of Asian deals, saw a drop of 23.8 per cent by value with $134 billion across 675 transactions, compared with $175.9 billion worth of deals (774 transactions) in the first half of 2016 when the country accounted for 59.9 per cent of the region’s M&A activity. Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch, Citigroup Inc. and JPMorgan Chase & Co. lead the M&A league table for the first half of 2017.