Date
25 September 2017
The US has led the wave of global mergers & acquisitions activity this year. Photo: Bloomberg
The US has led the wave of global mergers & acquisitions activity this year. Photo: Bloomberg

Global M&A deals surge as confidence returns

Mergers and acquisitions (M&A) deals worldwide totaled US$1.75 trillion in the first half of this year, a rise of 75 percent over the same period last year and the marking the highest level since 2007, Financial Times reported.

The growth suggests that risk aversion, embraced after the financial crisis, is being pushed aside as confidence returns amid an improving global economy.

M&A value soared on all three continents during the first half as many companies flush with cash took on transactions with vigour, the paper said.

In the US, M&A announced in the year to date stands at U$748.5 billion, up almost three-quarters on a year earlier. In Asia-Pacific, deals are said to have hit US$327.8 billion, up 85 percent and the best year-to-date period for dealmaking in the region since Thomson Reuters began recording the data in 1980.

Meanwhile, Europe saw US$509 billion worth of deals being announced in the six months to June, marking a more than doubling over the corresponding period in 2013.

The rebound has spread across most sectors except financials, where tougher regulation has suppressed appetite, the report said.

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