Activity in the global M&A market has dropped to a 10-year low – Kommersant

According to London Stock Exchange (LSE) data, cited by Financial Times (FT), in the first nine months of the year, the global volume of mergers and acquisitions (M&A) transactions amounted to $2 trillion. This is 28% lower than for the same period in 2022, and the lowest figure since 2013. In the third quarter, global M&A activity was just $616 million, the worst third quarter since 2012.

The most noticeable drop in activity was in the segment of large transactions (more than $10 billion) – their volume in the first nine months fell by 42% compared to the same period last year. Experts interviewed by FT explain the slowdown in activity in the global M&A market by greater caution on the part of private investment funds due to rising discount rates of the world’s leading central banks, as well as the strengthening of the antimonopoly policy of regulators, which forces companies to not be as active as before in seeking to take over competitors.

A downward trend in activity in the M&A market has been observed since last year. In July became known on a significant reduction in commissions for investment banks and bonuses for investment bankers amid a slowdown in the mergers and acquisitions market. Global M&A volume fell by a third last year, and by a further 42% in the first half of this year compared to the same period in 2022.

Why activity in the Russian M&A market continues – in material “Kommersant”.

Evgeny Khvostik