Goldman Sachs Top Worldwide M&A Advisor - Leads in the US, Europe & Asia Pacific
Goldman Sachs maintained the top position for worldwide announced M&A advisory work during the first half of 2012, a position the firm also held during the first half of 2011. Morgan Stanley took the second spot for worldwide M&A. Goldman Sachs moved two spots to first in the US Any Involvement rankings and maintained its lead in Europe and Asia Pacific. Deutsche Bank moved five places to take the fourth spot for worldwide financial advisory so far in 2012.
Worldwide M&A Falls 25% from 2011; Slowest First Half for US Deal Making since 2003
Announced worldwide M&A totals US$1,002 billion so far this year, a decline of 25% compared to year-to-date 2011, and is the slowest first half for worldwide M&A since 2010 (US$970 billion). Americas targets accounted for 41% of global activity in the year-to-date period, ahead of Europe (US$354 billion, 35%). US M&A announced so far during the first half of 2012 totaled US$299 billion, down 44% from year-to-date 2011 and is the slowest start to the year for US deal making since 2003.
Second Quarter Improves Slightly; Government-related M&A accounts for 20% of Q2 Activity
Announced M&A during the second quarter of 2012 reached US$504 billion, up 1% from the first quarter of 2012 (US$498 billion). Compared to the second quarter of 2012, this quarter's activity is down 27%. Government-related purchases and divestitures accounted for 20% of announced deals during the second quarter of 2012, the highest percentage since the third quarter of 2010.
Energy & Power, Materials and Financials Lead All Sectors
M&A in the Energy and power sector reached US$188 billion in the first half of 2012, down 28% from first the first half of 2011, while M&A in the materials sector totaled US$141 billion so far in 2012, down 23% from last year's first half. Acquisitions in Europe accounted for 49% of year-to-date activity in the materials sector, bolstered by the year's largest transaction - the US$48.9 billion acquisition of Xstrata PLC by Glencore International.
Buyside Financial Sponsor M&A Down 19%; US Accounts for 55%
Global private equity backed M&A totaled US$102 billion during the first half of the year, a 19% decrease over the first half of 2011. Second quarter activity saw slight increases over the first quarter of this year, but fell 36% compared to the second quarter of 2011. Private equity-backed M&A targeting the US reached US$57 billion in the first half of 2012, up 14% from activity seen during the first half of 2011 and accounted for 55% of year-to-date volume.
Emerging Markets M&A Falls 27%; Cross-Border Down 10%
Year-to-date figures for emerging markets target M&A have reached US$133 billion, accounting for 13% of total M&A, down 27% compared to the first half of 2011. Chinese M&A activity accounted for 18% of emerging markets acquirors and targets during the first half of 2012. Cross-border M&A totaled US$397 billion during the first half of 2012, accounting for 40% of total M&A activity this year. The US initiated 26% of all acquisitions abroad so far in 2012 ahead of Japan (8%) and France (7%). While the US, UK and Switzerland were the target of 40% of all cross-border acquisitions.