The global mergers and acquisitions (M&A) deal value amounted to $3.6 trillion in 2020. The figure set a three-year low, slightly higher than the previous low of $3.2 trillion set in 2017.
According to the research data analyzed and published by Sijoiturahastot, global M&A deal value in the first six months of the year totaled $1.2 trillion. Compared to 2019, that was a 41% decline. It was also the lowest H1 figure since H1 2013.
US Deal Value Declines by 21% as Europe Shoots up by 34%
A strong second half nearly erased the disaster that was H1 2020. For two consecutive quarters in H2 2020, the M&A deal value surpassed $1 trillion. Deal value for Q3 and Q4 2020 totaled $2.3 trillion.
Compared to H1 2020, that marked an 88% uptick and was the strongest consecutive half-year increase ever. The previous record was a 46% increase in H2 1997. H2 2020 was also the strongest second half in history with regards to deal value.
Moreover, in 2020, the total number of deals worth $10 billion and above was 21% below the 2019 figure. But the number of deals valued between $5 billion and $10 billion increased by 38% year-over-year (YoY) and their value rose by 36%. The total number of mega deals ($5 billion+) for the year was 116, up from 97 in 2019.
In the US, the global deal value for the year declined by 21% YoY from $2.2 trillion in 2019 to $1.4 trillion. At the height of the pandemic, the US also had an 80% decline in M&A activity.
But in Europe, there was a 34% uptick as the figure rose from $735 billion in 2019 to $988.6 billion. Asia Pacific had a 15% increase as its total deal value went from $758 billion in 2019 to $871.5 billion.