As firms attempt to adapt to ever-changing political and technological change, global M&A stuttered over the summer, following a strong showing in the first half of the year, according to Mergermarket’s global M&A trend report for Q3 2017.
The third quarter of 2017 has seen just US$674 billion, the lowest quarterly value since Q1 2016 when 4,349 deals worth $623.4 billion occurred.
Asia-Pacific (excluding Japan) M&A activity experienced a pullback in the third quarter of 2017. The region recorded 831 deals valued at $157.8 billion in Q3 2017, a 10.9% drop by value from Q3 2016 ($177.2 billion, 930 deals).
APAC outbound M&A deal value declined by 40.3% in Q3 2017, to $26.8bn, from $44.8bn in the same period last year. The drop is in line with the Chinese government’s efforts to curb excessive dealmaking.
Chinese companies will still continue to search for acquisitions, but will reserve their efforts for transactions that are business critical.