New Report Reveals Sharp Increase in 2011 Deal Values

A new report reveals a 49% increase in deal value for the first half of 2011 against the same period last year. There have been over 2,417 transactions which total a combined value of €279.7bn.

The report, ‘Deal Drivers EMEA’, published by mergermarket in association with Merrill DataSite, shows that since 2H09 – after the post-financial crisis lull – deals valued above €500m have been increasing steadily in every half-year period and, in 1H11, have reached their highest level since 2H07.

This widespread increase in deal values reflects a broader trend on the merger and acquisition (M&A) landscape, with international expansion by large corporate players acting as one of the most important stimuli for M&A activity in 1H11.

In addition to the above findings, the report provides a review of European M&A activity, offering a detailed analysis of specific sectors and regions and identifying emerging trends in deal flow for the upcoming year.

Key findings in the report include:

• Energy continues to generate the most significant large-cap deal flow, accounting for more than a fifth of aggregate M&A deal value in the EMEA region in 1H11.
• Industrials and chemicals deal value nearly doubled from €28.1bn in 1H10 to €54.3bn in 1H11, the most dramatic rise experienced by the automotive niche, thanks largely to big consolidation moves in Germany’s automotive sector.
• The total value of deals in the technology, media and telecommunications (TMT) sector over the first half of the year was the highest since 2007, with the top two transactions belonging to two of Europe’s largest telecom operators.
• Transatlantic M&A has increased from 316 deals worth €51.1bn in 1H10 to 388 worth €87.2bn in 1H11.

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