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Baker McKenzie Cross-Border Q1 2017

Baker McKenzie Cross-Border Q1 2017

12 April 2017

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While the political turbulence of 2016 has shown little sign of abating, dealmakers seem to have taken the volatility on board. The Index fell to 218 (from 263 last quarter) but megadeals have kept it from sinking further.

The triggering of Article 50, uncertainty around the Trump administration and bruising electoral campaigns in the EU have coalesced to exert downward pressure on the M&A market in Q1 2017.

Highlights from Q1 2017:

  • There were 1,238 cross-border deals worth US$331.2bn – a fall of 18% in volume but only 3% down in value compared with Q1 2016.
  • Cross-border M&A made up 49% of all deal value and 35% of all deal volume in Q1 2017.
  • North America was the hot target. The region accounted for more than half of all cross-regional dealmaking, with 206 deals worth US$120.8bn.
  • On the sector side, technology led the way this quarter, with 182 deals worth US$14.9bn. Consumer deals enjoyed the highest value with US$113.3bn, boosted by the biggest deal of the quarter, which saw UK-based British American Tobacco agree to acquire the remaining 57.8% stake in US rival Reynolds American for US$60.7bn.