The value of global deals grew by 8% to $1,728 billion in the first six months of 2011 from $1,601 billion in the first half of 2010, according to the latest M&A Report from Zephyr, the M&A database.
Transaction values have held despite deal volume continuing a pattern of decline that began in the second half of 2009. A total of 27,119 deals were announced the first half of this year, the lowest half-yearly result since before the financial crisis.
Growth in global deal values was driven by a 52% increase in the value of private equity and venture capital investment, which reached a global total of $138,154 million after bottoming at $91,117 million in the first half of 2010. The largest private equity deal by value was worth $9,400 million and targeted US assets belonging to Australias Centro Properties. Blackstone Group provided the equity.
North America and Western Europe performed well, with the value of deals targeting both regions increasing by around a third compared with the year-ago period. The total value of all deals with North America-based targets reached $628,626 million the first half of this yearthe highest amount since the first half of 2009. The largest global deal by value had a US-based target, T-Mobile USA, and was worth $39,000 million, or 2% of all global transaction value.
There was no growth in the volume or value of deals targeting Asia/Asia Pacific and deal making activity was at its lowest level since before 2007. There were 7,579 deals with targets in Asia/Asia Pacific worth a combined $334,717 million. The weakened result was due in part to lack of growth in the value of deals targeting China, the regions most important investment target. The largest deal by value in Asia/Asia Pacific the first half of this year was an acquisition of Australia-based AXA Asia Pacific Holdings.
The value of deals with Middle East-based targets was driven down, in part, by fragile private equity interest in the region. There were 222 deals with Middle East targets worth $10,191 million (First half of 2010: 444 deals worth $13,335 million), but just seven of them involved private equity investment. Overall, given political uncertainty in the Middle East and North Africa, the result was respectable. There was a 43% growth in Middle East deal value compared with the second half of 2010, driven by increased investment in the health care sector.
(CM)