Daily Management Review

World market of mergers and acquisitions adds 30% in Q1


The number of mergers and acquisitions (M&A) increased by 30% in the first quarter to reach $690 billion, as reported by the Financial Times using statistics from the London Stock Exchange Group. The volume and number of substantial M&As (worth more than $10 billion) increased significantly in the first quarter of 2023, with 11 acquisitions totaling $215 billion compared to five deals totaling $100 billion.

Following record highs in 2021, the volume of M&A has sharply decreased in the last two years due to rising interest rates, economic instability, and other unfavorable conditions. Now, the numbers are starting to rise again.

"We have returned to our regular or typical state. We are witnessing a true recovery from the incredibly low levels of this time last year," stated Andre Kelleners, Goldman Sachs' head of M&A in Europe, Africa, and the Middle East. Anticipations of a significant rate drop by the Federal Reserve this summer are among the drivers of the recovery. However, as analysts point out, investors continue to exercise some prudence.

The two biggest transactions were the $35 billion acquisition of software engineering company Ansys by American developer Synopsys and the $35 billion merger of American banking organizations Capital One and Discover Financial Services. In the first quarter, the amount of M&A in Europe increased by 60% to $127 billion, while it decreased in Asia-Pacific.

source: ft.com