DealZone

U.S. M&A hits 15 year low

August 28, 2009

This year’s annual August doldrums was one for the record books.

U.S. M&A for the month totalled $13 billion, its lowest since February 1994, while global M&A stood at $72 billion, the lowest since February 2003, according to data from Thomson Reuters.

The largest U.S. deal was Warner Chilcott’s $3.1 billion purchase of Procter & Gamble’s prescription drug business.

Year-to-date, however, European M&A has suffered even more, with total deal value halving to $378.4 billion. U.S. mergers, at $441.5 billion, have fallen 40 percent from a year ago. Fees for completed in August sank to $694 million, the lowest since records started in 1998, according to Thomson Reuters.

Global financial sponsor deals reached $2.4 billion, the lowest level of activity in 8 years. Privaty equity and other financial sponsor activity accounted for only 3.2 percent of total M&A activity in August. So far this year, global buyouts totaled $32.1 billion, down 80 percent from a year ago, the data showed.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/