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?

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Comments

  1. $15.5 billion in Chinese M&A, equals a bit more than 10 dollars per person. I can only imagine how quickly China’s M&A activity will pick up once Chinese companies start succeeding with their international purchases.

  2. Thomas says:

    Actually look at the Indian numbers – even more amazing, considering Indian GDP is less than 40% of Chinese. In some ways, India is the more “natural” competitor to America (I don’t mean it in any negative way, more like London competing with New York in the financial services business), because India is vast, diverse, multi-ethnic/multi-religious, and because of its Bollywood, has a culture-exporting business too (and Indian movies and music are in high demand in middle-east and parts of Asia – because the western stuff has become way too post-modern).

  3. Lazars says:

    It is mainly because Indians Inflated the commodity prices by 100% during 90′s and Increased salaries of Governement servants creating Cash flow…………mind it all this intentionaly done expecting jobs and money flow from USA.
    They have played with economy welll, no one is protesting on inflation , since software money is flowing like crazy…….Indians are parasitic on US economy totaly…