September 6, 2016
By Olga Tarabrina
$1.01tr: US targeted M&A volume in 2016 YTD
US targeted M&A volume has hit $1.01tr in 2016 YTD, surpassing the $1tr mark for the third consecutive YTD period. The last such running streak was recorded over 15 years ago, between 1998 YTD ($1.15tr) and 2000 YTD ($1.12tr).
Volume in 2016 YTD, however, is down 31% from the record $1.47tr announced last YTD. 2015 ended on an all-time annual high of $2.19tr, up 40% on second placed 1999 ($1.56tr).
40%: drop in US domestic M&A
US domestic acquisitions lead the year-on-year volume decrease, with a 40% drop from $1.18tr in 2015 YTD to $702.3bn in 2016 YTD, the lowest YTD level since 2012 ($470.0bn). Domestic M&A activity has also declined, from 6,364 deals in 2015 YTD to 5,177 deals in 2016 YTD, the lowest YTD activity level in 7 years (4,256 deals in 2009 YTD).
12 $10bn+ US domestic M&A deals have been announced in 2016 YTD, worth $202.6bn, compared to 23 such deals announced in 2015 YTD for a total of $606.0bn.
$311.5bn: US inbound M&A at record high
In contrast, US inbound M&A totals $311.5bn in 2016 YTD, up 7% from $292.0bn in 2015 YTD, and the highest YTD level on record. Inbound M&A accounts for a 31% share of total US targeted acquisitions in 2016 YTD, the highest YTD share on record.
The $43.1bn pending bid by Canadian oil & gas firm Enbridge for Spectra Energy, announced on September 6, is the third largest M&A deal globally in 2016 YTD, and the sixth biggest US inbound M&A deal on record.
$159.0bn: US M&A withdrawn YTD in 2016
29 US targeted deals worth of $159.0bn have been both announced and then withdrawn in 2016 YTD compared to 33 such deals ($93.5bn) in 2015 YTD. The two biggest deals are both domestic, including Honeywell International’s withdrawn $102.8bn bid for United Technologies on March 1, soon after the deal was announced on February 26, 2016.
Goldman Sachs: top advisor for US targeted M&A
Goldman Sachs leads the US M&A advisor ranking in 2016 YTD with $345.1bn, followed by Bank of America Merrill Lynch ($287.6bn) and Morgan Stanley ($251.5bn).