Global Merger & Acquisition Deal Tally Hits $3.1 Trillion Mark In 2016: Report

New Delhi: Global merger and acquisition activity has soared to $3.1 trillion so far this year -- its third highest since 2007 -- even as deal value saw over 22 per cent decline over last year, says a report.

According to global deal tracking firm Merger-market, despite a series of "political shockwaves", global M&A activity till date amounted to $3.1 trillion, through 16,194 deals.

The M&A deal tally so far this year registered a 22 per cent decline in value terms and 10 per cent fall in number of transactions over last year. Last year, the global deal tally stood at $3.9 trillion.

However, global M&A activity till date of $3.1 trillion managed to reach its third highest deal value since 2007, when transactions worth U$3.7 trillion were announced.

The report further noted that October 2016, marked the peak of yearly M&A activity, with 1,362 deals worth $454.3 billion representing the highest monthly deal value since May 2007 when $546.7 billion transaction were announced.

The year 2016 witnessed just 38 big ticket transactions (worth more than $10 billion) aggregating to $911.5 billion. In the corresponding period last year there were 57 such deals worth $1.5 trillion.

Going forward, "the outlook for 2017 remains uncertain", Merger-market said, adding that "with Brexit negotiations, the nature of Trump's Presidency as well as the French and German elections, all under question".

Sector-wise, energy, utility and mining attracted deals worth $582.8 billion by way of 1,351 deals, followed by Industrial and chemicals ($498.5 billion, 3,056 deals) and technology ($401.4 billion, 2,115 deals).

The report further noted that Chinese deal-makers engaged in 242 deals worth $171 billion outside of Asia, 3.5 times higher than 2015's previous record value.

The US deal-making accelerated towards the end of the year, with a flurry of mega deals (AT&T/Time Warner, Level 3/Century Link, Energy Transfer/Sunuco) bumping up the deal value, it added.