Despite high interest rates and modest economic growth, global mergers, and acquisition (M&A) deal activity surged during the third quarter (Q3) of 2024, with an 18% increase in total deal value year-over-year (YoY). Supply chain resilience drove this momentum, with $71 billion in supply chain-related transactions across 38 deals, spotlighting sectors like automotive, healthcare, and industrials, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “Global M&A Deals in Q3 2024 – Top Themes by Sector,” reveals that in terms of deal volume, there was a 4% increase from Q3 2023 to record 7,890 deals in Q3 2024.
Priya Toppo, Analyst, Strategic Intelligence at GlobalData, comments: “An increase in geopolitical tensions, population growth, environmental, social, and governance (ESG) considerations, labor shortages, and digital transformation have all contributed to a greater focus on supply chain related deals. This was especially true in the automotive, consumer, basic materials, healthcare, transportation, infrastructure, and logistics and industrials sectors.”
The biggest supply chain deal was China First Heavy Industries’ merger with China Shipbuilding for $16 billion. This deal was also the biggest in the industrials sector in Q3 2024. It was followed by TowerBrook Capital Partners and Clayton, Dubilier & Rice’s acquisition of R1 RCM for $9 billion and Boeing’s acquisition of Spirit AeroSystems for $8 billion.
Toppo continues: “An ongoing trend is the dominance of North America in M&A deal activity, accounting for 3,112 deals worth $325 billion during Q3 2024. However, Europe, China, South America, and the Middle East and Africa saw a YoY decline in deal value.”
Toppo concludes: “The M&A forecast for the last quarter of 2024 is cautiously optimistic, as potential rate cuts in certain markets and a generally improving global economic outlook could drive the activity. Nonetheless, mega-deals may encounter obstacles, especially in the US, where antitrust issues remain a priority for regulators.”
