Good Start For Global M&A

Data from Thomson Reuters showed last week that global merger and acquisition activity has totaled $325bn so far this year, the strongest start for global deal making in two years.

The 2013 figures were an 11 per cent increase in the first two months of 2012 and a flurry of deal making in the United States pushed February M&A levels to $147.9bn with nearly two weeks remaining, which was a 15 per cent increase over the entire month of January.

Real estate, consumer staples, telecom and technology targets account for almost half of announced worldwide M&A activity so far this year, compared to only 28 per cent during year-to-date 2012.

The volume of tech, media and telecom (TMT) investment grade corporate debt issuance shot up to $27.9bn for year-to-date 2013, which was an increase of 27 per cent over last year at this time and the strongest start for corporate debt in the TMT sector since year-to-date 2009.

US issuers account for 40 per cent of this year’s activity, followed by the UK at 21 per cent, with Germany accounting for 9 per cent. The average size of a TMT corporate debt offering this year is $1.0bn, second only to consumer staples at $1.2bn.

Global follow-on equity capital markets activity totals $54.3bn so far this year, an increase of 38 per cent compared to the same time last year and the best start for follow-on issuance in two years.

The energy & power and real estate sectors account for 40 per cent of global follow-on activity this year, compared to 32 per cent last year at this time. US issuers account for over a quarter of follow-on activity so far during the year, followed by China at 19 per cent and India at 8 per cent.

As an accountant, Philippe Herszaft specialises in offering advice, support and guidance in regard to business acquisitions and mergers.