Deal Drivers 2011: Half Year Report for the EMEA Region

Merrill Datasite, in association with mergermarket, has released “Deal Drivers 2011 Half Year Report for the European, Middle East and Africa (EMEA) Region”, which provides a comprehensive review of merger and acquisition (M&A) trends across EMEA by region and industry, comprising in-depth analysis of recent activity and forward looking insight for the remainder of the year.

The report indicates that EMEA 1H11 brought a remarkable 49% increase in deal value against the same period last year with 2,417 deals worth a combined €279.7bn. This widespread increase in deal values reflects a broader trend on the M&A landscape, which is the slow and steady return of larger M&A deals after a post-financial crisis lull. Transatlantic deal flow has played an important part in this higher end of the M&A market. Transatlantic M&A has increased from 316 deals, worth €51.1bn in 1H10, to 388 deals worth, €87.2bn in 1H11.

The energy, mining and utilities sector continues to generate the most significant large cap deal flow, with accounts contributing 20.1% of aggregate deal value in the EMEA region. In terms of volume, the industrials and chemicals sector deals are leading by far with 22.6% of aggregate deal volume.

International expansion on the part of large corporates has been one of the most important catalysts for M&A activity in this half year period. Investors’ healthy appetite for European assets is a promising sign for the rest of the year, but the severe economic uncertainty in Europe and abroad will undoubtedly make some dealmakers reluctant to enter the M&A market in full force. Positively however, 1H11 has put M&A prospects back on the table and proven that attractive acquisition targets still exist even in uncertain times.


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