Despite a decline in global merger and acquisition (M&A) deal volumes during the first half of 2024, their total value jumped 11.7 percent to $1.221 trillion. According to S&P Global Market Intelligence‘s latest Q2 2024 Global M&A and Equity Offerings Report, the number of M&A deals declined by 12.9 percent to 19,415 during H1 2024.Â
Larger deals support growth
M&A activity is yet to fully recover from the slowdown that started in 2022 as interest rates started rising. However, the report reveals that dealmakers are willing to pursue large transactions.
“A handful of large transactions served as a bright spot for M&A and IPO activity in the second quarter. While the overall number of transactions remains lackluster, the bigger deals are helping bring some growth to the overall value of transactions,” said Joe Mantone, lead author of the report at S&P Global Market Intelligence.
In Q2, S&P Global recorded an increase in $10 billion-plus M&A deal announcements outside the U.S. which supported the total value of global deals for the 3rd quarter straight.
“Clarity around the political landscape and the sustained rate-cutting cycle would certainly create optimism for M&A and IPOs heading into 2025,” Mantone added.Â
Read: MENA sees 321 M&A deals worth $49.2 billion in H1 2024, UAE and Saudi Arabia lead
Global IPO activity dips
The S&P Global report reveals that the number of global M&A deals has fallen below 10,000 three times in the last four quarters after having done so only once since 2020.
In Europe, large transactions helped boost the total value of announcements by 65.4 percent quarter-on-quarter and 25.4 percent year-on-year in Q2 to $182.87 billion.
During the first half of 2024, 616 global IPOs took place, a decline from 674 in H1 of 2023 and 819 in H1 of 2022.
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