Home/ Companies / News/  Worldwide M&As slip to 18-year low in April

MUMBAI : Mergers and acquisitions (M&As) worldwide fell in April to their lowest level since September 2002, according to data from financial markets tracker Refinitiv, as lockdowns hamper deal-making.

Deals with a combined value of $69 billion were announced globally in April 2020, down 72% from March and the lowest monthly total since September 2002, said Refinitiv. Year-to-date activity is at the lowest level in seven years, Refinitiv said, with $789.8 billion worth of deals announced globally during the first four months of 2020, down 39% compared to a year ago and the lowest year-to-date level since 2013.

The biggest dent was in cross-border activity, with deals worth just $18.4 billion announced in April 2020, down 67% from March, marking the lowest monthly total since February 2002. Year-to-date, deals of $231.3 billion were announced, down by a third from the previous year and the lowest year-to-date total since 2013.

April also saw a major drop in mega deals, or transactions worth over $1 billion. Just nine deals worth $1 billion or more were announced, compared to 56 in April 2019. The combined value of April 2020’s billion-dollar deals is $27.4 billion, the lowest monthly total since August 2003.

“Not a single deal valued at $1 billion or more was recorded during the week commencing 12 April 2020, marking the first weekly shutout since 2004," said the financial markets tracker.

M&As in Europe were the hardest hit, with M&As involving a European target totalling $6.1 billion in April, dropping 91% from March to the lowest monthly total since August 1992. Deal activity in the Asia- Pacific region fell 35% from March to a three-month low.

Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Updated: 29 Apr 2020, 10:54 PM IST
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