The value of private equity deals targeting Western European countries has fallen by 40% in the last 12 months, according to Zephyr, the M&A database.
A total of 998 transactions worth a combined 27,886 million were recorded during February 2011, down from 1,433 deals worth 46,225 million in February 2010. The decline was partly due to weakened private equity activity, as the value of private equity and venture capital deals with European targets fell for the third consecutive month to a year-low of 1,092 million.
The value of PE and VC investment in Western European companies was a particular weak spot in February 2011. At 1,092 million, it was 76% lower than the 4,630 million recorded in February 2010 and 90% less than the 12-month high of 10,851 million recorded for July 2010.
UK deal-making was another weak area as the value of deals with UK targets was 15% lower over the year against a 17% decline in the volume of these transactions (February 2011: 331 deals with UK targets worth 8,764 million; February 2010: 400 deals with UK targets worth 10,354 million). The growth target countries in terms of deal value included Spain, Sweden, Germany, Luxembourg and Belgium.
The largest deal by value in February 2011 was the announced public takeover of Spanish oil refinery Compaa Espaola de Petroleos by International Petroleum Investment Company, an investment company established by the Abu Dhabi government, for 3,966 million. There was no announced PE deal worth over 1,000 million, according to Zephyr.