The value of global mergers and acquisitions (M&A) deals in the first quarter of 2022 fell 29% year-on-year.
The value of global mergers and acquisitions (M&A) deals in the first quarter of 2022 fell 29% year-on-year, as market turmoil caused by the Russia-Ukraine conflict has slowed down. Stopping the "vertigo" increase of M&A transactions from last year.
According to Dealogic's data, the total transaction value of M&A deals in the first quarter of the past year fell to $1.010 billion, from $1,430 billion in the first quarter of 2021, due to geopolitical tensions forcing companies Large international companies have to suspend operations and postpone pursuing strategic acquisition plans.
Dwayne Lysaght, co-head of M&A for Europe, Middle East and Africa (EMEA) at JPMorgan Chase & Co. North America accounted for more than half of M&A transactions in the first quarter of 2022, despite a 28% drop in total transaction value, while M&A activity in the Asia-Pacific region fell 33% in the same period, said the report. period, down 184.2 billion USD. The total value of M&A transactions in Europe decreased by 25% to $227.67 billion.
Observers said that M&A activity data in the first quarter of 2022 was under great pressure by comparison with last year's record high M&A transaction value, and this is unlikely to be repeated.
Stephan Feldgoise, co-head of global M&A at Goldman Sachs, said: “Although launching M&A deals in the first quarter of this year has become a bit more challenging due to increased uncertainty and concerns macro concerns, but that still doesn't stop new deals."
Notable M&A deals in the first quarter include Microsoft's acquisition of "Call of Duty" maker Activision Blizzard for $75 billion; European telecommunications companies Orange and MasMovil combine with their branches in Spain through a joint venture worth 19.6 billion euros ($21.87 billion).
Stock market volatility makes it difficult for the world's biggest companies to use their market capitalization strength to buy up smaller rivals, observers say.
However, despite the above challenges, the overall environment for conducting M&A is still quite positive.
“We are taking a holistic approach – although the total value of M&A deals may decline this year, the pace of growth is likely to decline this year,” said Kevin Brunner, co-head of global M&A at Bank of America. growth will be the same as in 2016-2019.”
Notably, the number of M&A transactions with a value of more than 10 billion USD in the first quarter of 2022 increased to 13, compared with 12 transactions in the same period last year, showing that businesses are still not afraid to pursue new opportunities. big deal, despite the turbulent market situation.
By TTXVN