Global M&A activity hits USD 5 trillion in 2021, a 15-year record high
Category: #headlines  | By Nikita Chaurasia  | Date: 2021-12-21 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Global M&A activity hits USD 5 trillion in 2021, a 15-year record high

Merger and acquisition (M&A) activities across the globe account for USD 5.63 trillion as of 2021, a 15-year record of 63% and outpacing the USD 4.42 trillion benchmark set back in 2007, according to a Dealogic report.

Notably, healthcare and technology have always played a consequential role in steering the M&A market. This time was no exception despite a slight pent-up in financial demand because of the COVID-19 pandemic.

Experts believe that M&As are usually characterized by a strong equity market, and when share prices are high, it demonstrates a positive economic outlook, handing CEOs more optimism in pursuing transformative deals.

Large corporations benefitted from booming equity markets by using their stock as an upper hand for takeovers, while financial sponsors concentrated more on the publicly traded companies.

It is also worth mentioning that the volume of M&A deals in the United States doubled to USD 2.61 trillion in 2021, followed by Europe that saw a 47% increase to USD 1.26 trillion, and Asia-Pacific, which recorded a 37% growth to USD 1.27 trillion.

Easy availability of financial support gave rise to private equity deals, with volumes accounting for USD 985.2 billion, more than double recorded last year.

For instance, an abundant supply of capital and soaring valuations have stimulated exuberant levels of dealmaking in the first half of 2021, including the USD 43 billion deal between AT&T and Discovery – the year's largest transaction – and the USD 34 billion buyouts of Medline Industries.

As per reports, KKR has approached Telecom Italia for a potential USD 40 billion buyout offer which could be the largest private equity buyout in Europe.

In addition to the emphasis on technology, there will now be a push to maintain a climate-friendly and environmentally sustainable business as executives begin the chase for enterprises having the right climate credentials.

Source credit:

https://economictimes.indiatimes.com/news/international/business/global-ma-activity-smashes-all-time-records-to-top-5-trillion-in-2021/articleshow/88385603.cms

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

General Motors passes Ford to become the second-best EV seller in U.S.

General Motors passes Ford to become the second-best EV seller in U.S.

By Nikita Chaurasia

Detroit-based American multinational automaker, General Motors, has reportedly pulled ahead of fellow American rival, Ford Motor, to establish itself as second-biggest seller of all-electric vehicles in the US during the first quarter of 2023. The...

McKinsey commences job cuts focused on non-client serving teams

McKinsey commences job cuts focused on non-client serving teams

By Nikita Chaurasia

McKinsey and Co. a consulting giant entity has decided to start cutting jobs in one of the biggest rounds of layoffs for the company. This is likely to eliminate the jobs of about 2000 employees from work. The layoffs will be focused on support st...

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...