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May 4, 2016

By Justin Zeth

$378.2bn: US withdrawn M&A volume at record high

US targeted withdrawn M&A volume is up 64% on full year 2015 ($231.1bn) to $378.2bn in 2016 YTD, already the largest annual volume on record. Despite record high volume boosted by jumbo deals, activity (34 deals) has dropped to the lowest YTD level in 21 years. Average annual volume and activity of US withdrawn deals over the last five years is $243.4bn via 101 deals.

Global withdrawn M&A volume stands at $465.5bn in 2016 YTD, more than double the same 2015 period ($189.9bn). The average YTD level for withdrawn deals is $199.4bn via 333 deals in the last five years. 2007 was peak year for such deals globally with $1.1tr via 826 deals.

Five withdrawn jumbo deals in 2016 YTD

Five jumbo deals* have boosted US withdrawn M&A to a record high volume ($357.8bn), accounting for a 95% share. Seven deals is the annual record for jumbo deal activity which
occurred in 2001, 2007 and 2014. Average jumbo activity over the last 10 years is four deals

Pfizer largest withdrawn deal on record

Allergan and Pfizer’s $160.0bn bid became the biggest withdrawn deal on record on April 6, two days after the US Treasury Department announced stricter rules for tax inversions
on April 4, 2016

On April 30, Halliburton withdrew its $38.7bn bid for Baker Hughes, becoming the largest withdrawn oil & gas M&A deal on record. Before withdrawing the deal, the US Department
of Justice sought to block the bid citing it as anti-competitive

Global M&A hits $1tr on April 29

Global M&A volume stands at $1.04tr, reaching the $1tr mark on April 29, down 19% to the lowest volume since the same period of 2013 ($834.5bn). US targeted M&A is down 21%
to the lowest YTD volume since 2014 ($368.3bn)

Withdrawn M&A includes rejected and withdrawn deals only
*Jumbo deals are valued at $10bn and over

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