Global M&A boom remains relentless

Global merger and acquisition activity has been on fire over the past year, with deal activity this year already surpassing last year’s total, according to a new report from Refinitiv.

M&A activity so far this year has now reached US$3.6 trillion, the firm said.

In less than eight months, the total value of global deal activity has already overtaken last year’s total, Refinitiv reported. Year to date, deal value is more than double the total recorded in the same period last year, up 117% year over year, and the number of transactions is up 23% from last year.

Refinitiv noted that global M&A activity has topped US$1 trillion in each of the last four quarters, and that US$730 billion worth of transactions have been announced to date in the third quarter.

The tech sector has been most active in global M&A so far this year, accounting for 22% of deal activity.

“Following four consecutive trillion-dollar quarters, deal-making continues at pace in the third quarter with the U.S. driving activity, and with tech leading the sectors as companies continue to embrace digital transformation,” said Lucille Jones, analyst at Refinitiv, in a release.

“Less than eight months into the year, we have already seen the value of global deal making smash 2020’s annual total and reach an all-time year-to-date high of US$3.6 trillion in an extraordinary rebound from the lows seen last spring in the early days of the pandemic,” Jones added.

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