Big Changes in Global M&A Markets
Many people are making much of a Dealogic stat out yesterday showing that 2006 is already the biggest year ever for global mergers & acquisitions. Sure, but there is a much more interesting nugget in the story, and it is this:In 2000, Indian companies made 50 acquisitions worth a total of $957m, according to Dealogic. So far this year, they have made 146 acquisitions worth a total of $20.2 billion. Chinese companies bought 27 foreign firms in 2000 worth a total of $1.8 billion. So far this year they have bought 85 companies worth $15.5 billion.
The M&A boom is a truly global phenomenon. Of the top five deals this year only one, AT&T’s $83.4 billion acquisition of Bell South, is American. Eon of Germany’s $66.1 billion purchase of Spain’s Endesa is the second-largest deal, followed by French, Dutch and Italian takeovers.
Absolutely remarkable stuff. There has been a 3x increase in China's and India 's M&A activity since 2000, and the U.S. has only one spot in the top five deals of 2006. Who would have thought?
1