The value of global mergers and acquisitions surged to an all-time high of $1.3 trillion in the first quarter of this year, according to the latest data released by consulting firm Lufter, CNN reported on April 13th.
Despite, This is a 6% increase in global M&A volume in the first quarter compared with the same period last year, the value of signed and uncompleted deals is up 94% from the same period last year. Regionally, about half of the deals originated in the US, where deals rose more than 160 % to $654.1bn. Transaction volume in the Asia-Pacific region rose 44.9% to $206.5bn. Mergers and acquisitions in Europe rose 24.5% to $277.3bn a year.
In terms of industry, the technology industry has greatly driven the global M&A wave, with the global M&A volume of technology companies reaching US $274 billion, more than three times that of 2020. Microsoft said on April 12, it will buy artificial intelligence and voice technology company Nuance for $19.7 billion, making it the second-largest acquisition in Microsoft’s history, Reuters reported on April 14.
Although the global economy still hasn’t fully recovered from the outbreak, buoyant U.S. stock markets and cheap borrowing, driven by the Federal Reserve’s loose monetary policy, have stimulated companies and private equity funds, according to the Lufter report. The technology industry, which has benefited particularly from the telecommuting trend and the popularity of big data and cloud computing, has been a major target of M&A activity. Chinese companies are increasingly active in the global M&A wave. In March, Hisense bought Sanpower Holdings, a Japanese car air-conditioner company. According to a report released by Ernst & Young, in the post-epidemic era, Chinese enterprises are increasingly optimistic about the market prospect, and their intention of M&A in the coming year has reached a 10-year high. The epidemic under the asset price correction, will also bring opportunities to global capital.
