Aug 11, 2024 11:37 AM IST
An increase of M&A deals by $10 billion outside the US led to total global value of M&A deals growing for the third straight quarter.
The total value of mergers and acquisitions (M&As) globally has increased by 11.7% to $1.221 trillion during the first half of the calendar year 2024-25, compared to 2023-24, according to S&P Global Market Intelligence’s new Q2 2024 Global M&A and Equity Offerings Report.
However, the number of such deals was down 12.9% to 19,415 over the same time period.
What are mergers and acquisitions (M&As)?
A merger is when two companies decide to join together and form a single new entity together, with both of their business operations now being combined into one.
An acquisition is when one company buys the majority of shares belonging to another company and thereby, gains full control over it.
What happened to mergers and acquisitions (M&As) globally from 2022?
An M&A slowdown started in 2022 due to rate hikes, according to the report, which added that an increase of M&A deals by $10 billion outside the US led to total global value of M&A deals growing for the third straight quarter.
“A handful of large transactions served as a bright spot for M&A and IPO activity in the second quarter,” said Joe Mantone, lead author of the report at S&P Global Market Intelligence. “While the overall number of transactions remains lackluster, the bigger deals are helping bring some growth to the overall value of transactions.”
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The total number of global M&A transactions fell below 10,000 three times in the last four quarters after having done that only once since 2020.
What is the future outlook for global mergers and acquisitions (M&As)?
“Clarity around the political landscape and sustained rate-cutting cycle would certainly create optimism for M&A and IPOs heading into 2025,” Mantone said.
