North America M&A Review July 2018

  • North American M&A value up year-on-year
  • PE and VC value down, despite three deals each worth over USD 2bn

There were 1,773 mergers and acquisitions (M&A)

worth an aggregate USD 140,291 million targeting North American companies announced in July, according to information collected by Bureau van Dijk, a Moody’s Analytics company, and the leading publisher of company information. In terms of volume, this represents a 9 per cent decrease over the four weeks under review, while value declined 38 per cent from 1,903 deals worth USD 226,226 million in June. While volume also fell back year-on-year (July 2017: 2,072 deals) to a new 12-month low, value advanced from USD 113,396 million over the 12 months due to 20 deals each worth USD 2,000 million or more.

Bureau van Dijk’s research shows three of the top 20 deals by value in July were each worth more than USD 10,000 million. The largest announced during the four weeks was the public takeover of CA by Broadcom for an enterprise value of USD 18,400 million. Brookfield

Asset Management’s acquisition of Forest City Realty for USD 11,400 million and the purchase by BP, via BP American Production, of Petrohawk for USD 10,500 million completed the trio.

Bureau van Dijk’s data shows there were 1,277 private equity and venture capital (PE and VC) investments in companies based in North America in July worth a total USD 21,376 million, compared with 1,265 deals valued at aggregate USD 46,206 million in June. No single deal was worth USD 5,000 million or more in July, though three PE and VC investments did exceed USD 2,000 million.

Lisa Wright, director at Bureau van Dijk, commented, “It’s not uncommon to see a downturn in M&A activity after the close of the first half of the year as this is the summer period where   inevitably there is a lull in deals. However, deal values are still showing a significant increase when compared with the same time period in 2017 so I would still expect activity to again start to climb month-on-month, once we get through July and August.”

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