Consumer sector M&A deal value declines by 50% year-on-year to $138bn
There was a considerable decline in the number and value of merger and acquisition (M&A) deals announced in the consumer sector since the start of the year.
According to the research data analyzed and published by Stock Apps, the number of M&A deals in the global consumer sector dropped from 2,922 to 2,244 in the first nine months of 2020. Deal value also dropped by 50.3% during the period, going from $278bn to $138bn.
Overall M&A activity in APAC has, however, shown resilience during the pandemic. Some sectors in its economy actually experienced growth during Q1 to Q3 2020. These are the telecommunication (19%) life sciences (9%) and utilities (9%) industries.
APAC high-value deals reach $392bn in Q3 2020, highest on record
A report from Global Data reveals that Goldman Sachs took the lead in consumer M&A deal activity, advising on 23 deals worth $21.1bn from Q1 to Q3 2020. PwC led in deal volume, advising on 25 deals worth $3.5bn.
During H1 2020, deal value in APAC decreased by 17% compared according to Mergemarkets. Comparatively, it declined by 31% in Europe and 72% in the US during the same period.
Similarly, deal volume in the first nine months of 2020 dropped 8% in APAC. In contrast, the US saw a 20% drop while EMEA declined by 15%.
However, for the APAC region as a whole, high-value deals reached $392bn in Q3 2020, the highest figure on record for any third quarter. In Q3 2020, China topped deal activity in APAC with a 29.5% share of total deal volume. Japan was second with a 15.9% share and India took the third spot with 15.7%. China had a 44.2% share of total deal value during the quarter, followed by Japan at 25.9%.
On a global scale, the pandemic slowed down M&A activity significantly, with the April deal volume being 80% lower than in December 2019. As of mid-September, there had only been 15 mega deals, compared to 27 during the same period in 2019.
The full story, statistics and information can be found here: https://stockapps.com/consumer-sector-ma-deal-value-declines-by-50-yoy-to-138-bn/
