Global mergers and acquisitions (M&A) have seen a notable increase in total transaction value during the first half of 2024, despite a decrease in deal volumes, according to S&P Global Market Intelligence’s second quarter (Q2) 2024 Global M&A and Equity Offerings Report.
M&A are business transactions where the ownership of companies, business organizations, or their operational units is transferred to or combined with another company or business entity.
The report reveals that the total value of M&A transactions rose by 11.7 per cent to USD 1.221 trillion in the first half of 2024 compared to the same period in 2023.
However, the number of deals declined by 12.9 per cent, with 19,415 transactions recorded, as per the report.
This mixed activity indicates that while global M&A has not fully rebounded from the slowdown triggered by the 2022 rate-hiking cycle, dealmakers are still pursuing larger transactions.
The second quarter of 2024 saw a particular increase in USD 10 billion-plus M&A announcements outside the United States, contributing to the third consecutive quarter of year-over-year growth in total deal value, as per the report.
Joe Mantone, lead author of the report at S&P Global Market Intelligence, highlighted the impact of these large transactions, stating, “A handful of large transactions served as a bright spot for M&A and IPO activity in the second quarter; while the overall number of transactions remains lackluster, the bigger deals are helping bring some growth to the overall value of transactions.”
Mantone also noted that “clarity around the political landscape and sustained rate-cutting cycle would certainly create optimism for M&A and IPOs heading into 2025.”
The report also pointed out key regional trends, with Europe’s M&A activity showing significant growth.
The total value of M&A announcements in Europe increased by 65.4 per cent quarter-over-quarter and 25.4 per cent year-over-year in the second quarter, reaching USD 182.87 billion.
