M&A Liquidity Events Threaten To Shatter 2007 Record For Bumper Deals - Mergermarket

Tom Burroughes

5 November 2015

Global merger and acquisition activity – often big liquidity events that spawn new high net worth individuals – has this year broken 2014’s tally, with a total value so far of $3.29 trillion, above $3.27 trillion for all of last year, according to .

Recent deals have pushed the total significantly higher, with deals such as Visa and Visa Europe joining hands to become a single entity in an $18.1 billion agreement. This has been followed by US-listed Activation Blizzard acquiring King Digital Entertainment, which owns the popular Candy Crush game, for $5.9 billion alongside US-listed Shire, which took over Ireland-based Dyax Corp for $5.1 billion.

The year now stands 10.7 per cent away from breaking all annual deal values on Mergermarket’s record, it said.

In 2007, a total of $3.78 trillion worth of deals took place; with average monthly values as they stand and October 2015 alone recording $332 billion worth of deals – 41 per cent more than October 2007.

Looking ahead, a number of large deals could push values towards the levels seen before the global financial crisis, Mergermarket said. It highlighted cases such as the beer companies SABMiller and AB InBev, which are working through the details of a potential $105 billion merger. ABI has until 4 November to launch a formal offer or walk away.

US pharma giant Pfizer is hunting for a large transaction and has been holding preliminary talks with Allergan, a US firm, in a deal that would create the largest global drug maker. The pharma, medical and biotech sector has already reached a record-breaking $397.2 billion value this year.