Global deal value passes $2 trillion as M&A boom continues
Worldwide deal making passed $2 trillion (£1.49 trillion) yesterday, pushing on from the all-time high set at the end of the first quarter.
New data from Thomson Reuters shows that on Monday worldwide deal value for the year passed $2 trillion.
Deal value shot up 69.1 per cent compared to the same period last year when it stood at $1.197 trillion.
This is only the third time deal value has passed $1.5 trillion in the equivalent period since 1999.
Read more: There's more to come in the M&A boom
In 2000 global deal value at 21 May was $1.539 trillion while in 2007, on the eve of the financial crash, deal value was $1.779 trillion.
Deal value in Europe is up an incredible 138.9 per cent, climbing to $712bn from £298bn in the same period last year.
European deal value has not exceeded $712bn in the same period since 2007, when it stood at $732.9bn.
The Americas saw a 60.9 per cent increase in deal value to $893.4bn from $555.2bn the previous year.
Read more: Global telco M&A hits 12-year high following T-Mobile deal with Sprint
Some analysts have said the current drive to do deals could be a sign of a market reaching its peak.
Head of research at Accendo Markets Mike van Dulken said: “You often find you get a rush of dealmaking at the top of the market because bullishness is prevalent.
“This time could be different, coming out of 10 years post-crisis and with a different central bank situation, but in terms of when you can convince people to do deals it tends to be when the markets are doing well because people are sitting on more wealth and feeling more positive.”
Read more: FTSE 100 hits record high as fears of Trump trade war wane
The FTSE 100 is currently at a record high of 7,899, however with the pound currently worth $1.34, on a constant currency basis it still has some way to go to reach the equivalent value prior to the financial criss when the pound was worth nearly $2.
Energy and power was the sector that topped the rankings for deal value in the period with $328.3bn worth of deals, up 54.6 per cent, followed by healthcare on $278.6bn, a 104 per cent increase, and media and entertainment on $220.9bn, an increase of 358.6 per cent on the previous year.
Recent major deals include pharmaceuticals firms Shire and Takeda's £46bn deal which will see Japan's Takeda take control of its London-listed rival and Exchange operator CME Group's acquisition of London-listed tech company Nex Group for £3.9bn.
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