Financial deals boost record M&A

June 29, 2007

First-half mergers & acquisitions hit another record breaking through the $1 trillion mark, thanks largely to deals for financial companies, according to preliminary numbers from Dealogic.

Takeovers of U.S.-based banks and other financial institutions rose to $157.48 billion during the first half, up from $90.59 billion a year earlier, to take the lead spot from telecommunications companies. Buyouts of First Data and Sallie Mae topped the sector rankings. To see a table of Dealogic’s breakdown of first half M&A activity click here.

Telecommunications dropped almost by half during the same period, falling from its spot as the most active sector during the first half of 2006 to the sixth-most active sector by volume so far this year with $80.72 billion worth of deals. Alltell’s sale helped keep the sector from falling off the charts altogether.                                                                                                    

The two big sector gainers during the quarter were real estate and technology, where deal values nearly tripled. Dealogic said $107.09 billion worth of real estate deals, were announced, including Tishman Speyer’s and Lehman’s planned purchase of Archstone-Smith, while technology companies went for a total of $104.56.

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