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TOTAL M&A ACTIVITY IN 2018:
US$ 3,549 TRILLION

+12% Compared to 2017

TOTAL CROSS-BORDER M&A
ACTIVITY IN 2018:
US$ 893 BILLION
25% of total M&A (by value)

+7% Compared to 2017

Intra regional
totals:
US$ 1.6
Trillion

+14%

TOTAL inbound:
US$ 211.7
BILLION

-xx%

By Region

TOTAL outbound:
US$ 340.8
BILLION

-xx%

By Region

David Brinton
Partner

Tel: +1 212 878 8276

Email me

Intra regional
totals:
US$ 981
Billion

+17%

TOTAL inbound:
US$ 475
BILLION

-xx%

By Region

TOTAL outbound:
US$ 208.8
BILLION

-xx%

By Region

Dr. Thomas Krecek
Partner, Co-Head
of Corporate

Tel: +49 69 7199 1524

Email me

Intra regional
totals:
US$ 772
Billion

+4%

TOTAL inbound:
US$ 101.2
BILLION

-xx%

By Region

TOTAL outbound:
US$ 305.1
BILLION

-xx%

By Region

Andrew Whan
Partner

Tel: +852 2825 8903

Email me

Intra regional
totals:
US$ 77
BILLION

+10%

TOTAL inbound:
US$ 41.9
BILLION

-xx%

By Region

TOTAL outbound:
US$ 24.4
BILLION

-xx%

By Region

Mohammed
Al-Shukairy

Partner

Tel:
+971 4503 2707

Email me

Spencer Baylin
Partner

Tel:
+44 207006 1519

Email me

Intra regional
totals:
US$ 105
BILLION

+3%

TOTAL inbound:
US$ 62.6
BILLION

-xx%

By Region

TOTAL outbound:
US$ 13.4
BILLION

-xx%

By Region

Anthony Oldfield
Office Managing
Partner

Tel: +55 11 3019 6010

Email me

North America

US$ 1.6 Trillion

+14%

H1 2018 vs H2 2017

+14%

target target
outbound inbound information
  • In the US, sector consolidation, disruption and private equity buyouts continued to drive transformational acquisitions and large-cap deals (Dr Pepper Snapple/ Keurig Green Mountain merger and KKR's acquisition of Thomson Reuters' Refinitiv), resulting in a 15% increase in M&A value (US$ 1.5tn). Whilst inbound activity declined (-10%), outbound M&A remained near its highest annual level (US$ 3.2bn) as US companies continued to look for growth in new regions with exposure to different markets and consumer dynamics.
  • The effects of the 2017 US tax reform, strong capital markets and debt markets which drove M&A activity in H1 were buffeted by slowing economic growth, increasing interest rates, escalating trade tensions and political instability in H2.
target

Europe

US$ 981 billion

+17%

H1 2018 vs H2 2017

+17%

target target
outbound inbound information
  • In 2018 despite political volatility, Europe was the global region which saw the largest increase in M&A value (+17%). This was driven by an increase in inbound M&A (+43%), principally from North America (US$ 238bn) and APAC (US$ 213bn, a +222% increase), whilst intra-European M&A remained static.
  • Spain was a European M&A hotspot in 2018, surging +132% to US$ 113bn. The UK continued to have the year-on-year highest deal value (US$ 247bn, +33%), driven by both strong domestic (GKN/Melrose) and US inbound activity (US$ 112bn, +93%) (Comcast/Sky, Marsh McLennan/Jardine Lloyd Thompson and GIP/Hornsea). Others saw drop-offs in value (Germany, -2% and Italy, -6%), the most significant being France (-42%).
target

Asia Pacific (inc. Japan)

US$ 772 billion

+4%

H1 2018 vs H2 2017

+4%

target target
outbound inbound information
  • China saw an increase in inbound M&A (+42%), linked in part to the opening up of new sectors to foreign investment. Outbound M&A decreased (-12%), although there were marked increases of outbound to Europe (+79%) and MENA (+177%). This contrasted with a drop in deals into the US (-42%), evidencing a switch away from the US market seen by potential Chinese buyers as increasingly risky, especially as a result of CFIUS controls and trade tensions between China and the US. Japan saw the largest swing, with a +96% increase in domestic M&A, driven by continued corporate carve-outs. Outbound saw a +118% increase with Takeda's US$ 59bn takeover of Shire the most prominent.
  • Australia saw an increase in domestic M&A (+109%), with stock market volatility driving an increase in trade sales (as opposed to exits by way of IPO) and the announcement of several large public-to-privates (KKR/MYOB and Brookfield/Healthscope). Both trends are likely to continue in 2019.
target

Latin America

US$ 105 billion

+3%

H1 2018 vs H2 2017

+3%

target target
outbound inbound information
  • In 2018, we saw a decrease in inbound transactions (-9%) and outbound transactions (-13%), due in part to the political changes across the region, with several presidential elections and new governments taking office in 2018. However, there was a spike in intraregional activity (+30%).
  • In 2019, we expect most of the investment opportunities to come from the energy and infrastructure sectors, particularly in Brazil, with the announced privatization of government-controlled entities and new auctions for energy and infrastructure projects. In addition, we expect to see an increase in inbound M&A activity in Chile, Peru and Colombia.
target

Africa and Middle East

US$ 77 billion

+10%

H1 2018 vs H2 2017

+10%

target target
outbound inbound information
  • Africa
  • 2018 witnessed increased M&A activity, reflecting an improved macroeconomic, political and FX environment, with Morocco, Nigeria, South Africa and Kenya attracting the most interest. Foreign investment continues to be the primary source of M&A, but we are also seeing a rise in intraregional M&A driven by sector consolidation, particularly in the financial services and telecoms sectors, and by an increase in African PE funds.
  • The outlook for 2019 remains positive, particularly in the energy and infrastructure sectors, with China continuing to play a significant role and increased focus by the US. Consumer-driven sectors (including education, healthcare and FMCG) will continue to drive investment, especially where there is a crossover with the financial services and tech sectors.
  • Middle East
  • Deal values are up +10%, reflecting a significant increase in the number of blockbuster deals of over US$ 1 bn. In contrast, total outbound M&A for the region is down -39%, a reflection of greater focus on intraregional investment and infrastructure development. Energy and mining (US$ 9.5 billion+ over 22 deals), technology and, to a lesser extent, the consumer sectors, are particularly active. Outlook for M&A in 2019 is reasonably positive and will be driven by opportunistic private M&A for cash-strong corporates and further consolidation, often driven by government-backed cornerstone shareholders.