MergerMarket released a report on merger and acquisition activity during 2015. It was the hottest year since 2007. These get interesting. I just saw a blog post somewhere that stated that 40% of the companies on the Fortune 500 are no longer there. Some of these deals will contribute to further change in that list. Check out the entire report for specifics and charts.
Oh, and the authors believe that 2016 will be even hotter.
The Industrials & Chemicals sector recorded 3,118 deals worth US$ 474.3bn, the second highest value on Mergermarket record, up 16.5% in value compared to 2014 (3,263 deals worth US$407.1bn), thanks to a push in H2 2015, with 1,550 deals worth US$ 313bn, the largest H2 on record.
The report notes that M&A activity in China was strong. “Despite concerns over China’s slowing economy, especially in manufacturing, Industrials & Chemicals as a whole, was able to have a strong showing. The year ended with 705 deals worth US$ 165.9bn in Q4 2015, the highest valued quarter in Mergermarket history, and a 16.4% increase in value compared to Q4 2014 (845 deals worth US$ 142.5bn). ”
Industrial Merger Activity in US
The Products and Services (1,497 deals worth US$ 181.4bn) sub-sector, traditionally the highest valued sub-sector, was slightly edged out by Chemicals & Materials (422 deals worth US$ 181.9bn) to be the highest valued sub-sector for the year. Chemicals & Materials was up 72.7% by value compared to last year, which saw 469 deals worth US$ 105.3bn. The Chemicals & Materials sub-sector was boosted by E.I. du Pont de Nemours and Company’s US$ 77bn acquisition of The Dow Chemical Company, and Air Liquide’s US$ 13.4bn acquisition of Airgas, of which the two deals combined accounted for half of the sub-sectors total value for the year.
The Industrials & Chemicals sector globally has seen a positive shift of late, especially in the US and Europe. The US led the way with 770 deals worth US$ 235bn in the sector, accounting for 49.6% of the Industrials & Chemicals sector’s total value, and up 55.9% compared to 2014. The largest sub-sector in the US was Chemicals & Materials with 108 deals worth US$ 121.7bn.
