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

PM Liz Truss to launch comprehensive review of UK’s visa policy

PM Liz Truss to launch comprehensive review of UK’s visa policy

By Nikita Chaurasia

Newly appointed Prime Minister Liz Truss is considering doing a complete review of Britain's visa system, as the nation struggles with severe labor shortages in vital industries. Business leaders across the UK have reportedly praised the decision...

UAE: Entrepreneurs and investors can benefit from visa reforms

UAE: Entrepreneurs and investors can benefit from visa reforms

By Nikita Chaurasia

The visa and business reforms by the UAE will open new prospects for investors, entrepreneurs, IT specialists, job seekers, and tourists, according to credible sources. This will reportedly benefit the region’s economic growth. Business Link...

Flipkart introduces new tech and design upgrades ahead of holiday season

Flipkart introduces new tech and design upgrades ahead of holiday season

By Nikita Chaurasia

Flipkart, India's indigenous online marketplace, is reportedly offering customers an improved shopping experience on its widely popular app. To better serve various client groups that are exploring e-commerce during the holiday season, Flipkar...