Six Regional Deep Dives on M&A Market Trends (Boston Consulting Group)

Summary

• Global M&A activity hit its lowest point in the first quarter of 2023 and is showing signs of revival after the most prolonged challenges since the 2008–2009 financial crisis.§1
• Africa's deal value fell to $6 billion in the second half of 2022, a 62% decline, and was $4 billion in the first half of 2023, a 73% drop from the first half of 2022 versus a 45% decline globally.§2
• European deal value declined by 55% from the first half of 2022 through the first half of 2023, exceeding the 45% drop globally.§3
• Japan's deal value in the first half of 2023 surged by approximately 50% compared with the first half of 2022.§4
• Middle East deal values in the first half of 2023 were similar to the first half of 2022 versus a 45% decline globally, while deal volume declined by 22% versus 15% globally.§5
• North American deal value declined by 37% from the first half of 2022 to the first half of 2023, compared with a 45% drop globally.§6
• Southeast Asia deal value dropped by 40% in 2022 and fell by 15% in the first half of 2023, better than the global decrease of 45%.§7

Key insights

1. Africa's market surged to an all-time high in 2021 with deal values exceeding $44 billion.§2
2. In 2022 the renewable energy sector attracted a record-breaking $118 billion in FDI to Africa, more than 60% of total FDI inflows.§2
3. Carrier Global's acquisition of Viessmann's Climate Solutions division was valued at $13.2 billion.§3
4. Glencore's bid to acquire Teck Resources was valued at $31.4 billion.§3
5. Technology-related deals accounted for approximately 40% of Japan's total deal value in the first half of 2023.§4
6. Japan Industrial Partners announced plans to acquire Toshiba for $15 billion in the largest take-private deal.§4
7. Sponsor-led deals focused on Japanese entities increased threefold from 2013 to 2022, and financial sponsors acquired more than 300 companies in 2022 alone.§4
8. Aramco acquired a 10% interest in Rongsheng Petrochemical for $3.4 billion.§5
9. Pfizer's acquisition of Seagen was an all-cash transaction valued at $43.8 billion.§6
10. The automotive sector accounted for approximately 60% of Southeast Asia's deal value in the first half of 2023.§7