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Global M&A deal value up 13 per cent

Global mergers and acquisitions deal value for the year to date stands at USD470.8bn, up 13 per cent from Q1 2009, according to a report by mergermarket.

However the start of the year is down 19 per cent from Q1 2008 and 42 per cent from Q1 2007.

Q1 2010 is the second strongest quarter in the last five quarters, after Q4 2009.

Propelled by the announcement of a number of mega-deals, Asia-Pacific (excluding Japan) started the new decade with a boom in M&A activity. Q1 2010 was the largest Q1 for Asia-Pacific (excluding Japan) on mergermarket records with a total deal value of USD103bn, 122 per cent higher than Q1 2009. Deal volume is up 21 per cent.

In the slowest first quarter since 1998, Q1 2010 Europe saw the announcement of 823 M&A deals with a total value of USD114.4bn – down 3.6 per cent from Q1 2009 by value and down 6.5 per cent by volume.

However, European private equity buyout activity started on a stronger note with deal values up by 227 per cent compared to Q1 2009, at USD 14.9bn – accounting for 46 per cent of the value of global buyouts so far this year.

US M&A for the year to date stands at USD148.7bn, down 25 per cent from Q1 2009 and down 27 per cent on the previous quarter. With a total of 661 announced deals, deal activity is up 16 per cent compared to Q1 09 but still down 15 per cent on the final three months of last year.

Buyout activity increased by seven per cent compared to Q1 2009 with a value of USD32.3bn. The largest buyout this year is Bain Capital’s acquisition of the US based Styron division of Dow Chemical, valued at USD1.63bn, followed closely by KKR backing the management in the USD1.5bn buyout of UK based Pets At Home. Europe makes up 44 per cent of the value of global buyouts so far this year.

Announced insolvency deals globally have dropped 69.4 per cent in value compared to Q1 2009 and 90 per cent compared to the peak achieved in Q2 2009. Activity by value is the lowest since Q3 2008.

Having worked on USD164bn worth of deals, Goldman Sachs leads the global rankings, though its value has dropped 18 per cent compared to Q1 2009. Goldman has a small USD4bn lead over Credit Suisse, ranked second globally.

Credit Suisse tops the European rankings for the first time on mergermarket records. Credit Suisse has worked on USD97.9bn worth of deals, up 151.5 per cent to Q1 2009. The firm has worked on all of the four largest deals globally announced so far this year.

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