Global M&A has stalled over the summer, following a strong showing in the first half of the year. Skadden Arps Slate Meagher & Flom is the lead global advisor by value whilst DLA Piper heads the pack in numbers, according to the latest Mergermarket figures. The third quarter of 2017 has seen just deals amount to US$ 674bn, the lowest quarterly value since Q1 2016 when 4349 deals worth US$ 623.4bn occurred. Skadden Arps topped the global deal tables in terms of value - with 170 deals valued at $356.4bn whilst DLA Piper had the largest number of deals globally - 400 at a value of US$88bn. The busiest sectors were energy, mining and utlities and technology, media and telecoms with media M&A leading the way.
US deals increase
Five of the largest deals in Q3 targeted the US, as business shifted from Europe to the US. American activity accounted for 900 deals worth US$ 236.8bn. Meanwhile Europe posted its lowest quarterly value since Q4 in 2012 - 1428 deals worth US$ 158 bn, leaving Europe acounting for 29.8 per cent of global M&A value, the lowest quarterly share of 2017 so far. Asia-Pacific (excl. Japan) M&A activity experienced a pullback in the third quarter of 2017. The region recorded 831 deals valued at US$ 157.8bn in Q3 2017, a 10.9 per cent drop by value from Q3 2016 (US$ 177.2bn, 930 deals).
China investment in Europe stalls
APAC outbound M&A deal value declined by 40.3 per cent in Q3 2017, to US$ 26.8bn, from US$ 44.8bn in the same period last year. The drop is in line with the Chinese government’s efforts to curb excessive dealmaking, the report says, adding that Chinese companies will still continue to search for acquisitions, but will reserve their efforts for transactions that are business critical. China's investment into Europe has stalled following its astromonical showing in 2016. The report attributes it to increased regulation in China, Europe and the US which has left sellers wary of pursuing Chinese bidders due to concerns over whether deals will be able to close - despite high premiums being available. Deals in industrial and chemical sector replaced technology as the most attractive sector followed by real estate. According to the Asia Pacific (excl. Japan) financial advisor league table, Kirkland & Ellis crowned the top legal advisors with a deal value of US$40,541m and King & Wood Mallesons is the one with most of deals(76).
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