Global M&A has broken last year’s annual tally after another ‘merger Monday’ pushed 2015’s total deal value to USD3.29 trillion, according to figures released by MergerMarket.
On 2 November, 28 deals worth USD35.7 billion were announced, taking 2015 above 2014 total deal value of USD3.27 trillion two months before year end. Record levels of 2007 are now clearly in sight.
Three of yesterday’s transactions broke the USD5 billion barrier with the largest being Visa Inc [NYSE:V] and Visa Europe Ltd joining hands to become a single entity in a USD18.1 billion deal. This was followed by Activation Blizzard [NASDAQ:ATV] acquiring King Digital Entertainment [NYSE:KING], which owns the popular Candy Crush game, for USD5.9 billion alongside Shire [NASDAQ: SHPG]’s takeover of Ireland-based Dyax Corp [NASDAQ: DYAX] for USD5.1 billion.
The year now stands just 10.7 per cent away from breaking all annual deal values on Mergermarket record. In 2007, a total of USD3.78 trillion worth of deals took place; with average monthly values as they stand and October 2015 alone recording USD332 billion worth of deals – 41 per cent more than October 2007, the eight-year old record's days are numbered.
Several transformational deals remain on the horizon across a variety of sectors that will continue to push values further towards 2007 levels.
Beer companies SABMiller [LON:SAB] and AB InBev [EBR:ABI] are working throught the details of their potential GBP 68 billion (USD105 billion) merger. ABI has now until 4 November to launch a formal offer or walk away.
Pfizer [NYSE:PFE] is on the hunt for a large-scale transaction and has been holding preliminary talks with Allergan [NYSE:AGN] in a deal that would create the largest global drug maker. The Pharma, Medical & Biotech sector has already reached a record breaking USD397.2 billion value this year.
And despite talks between Vodafone [LON:VOD] and Liberty Global falling through in September, in what could have been one of the largest Telecommunications deals in history, the two telco giants could now be setting their sights on other large players.
As the year enters its final two months, all eyes are on whether 2007’s record will be crushed.
