Value and Number of Cross-border M&A by Sector/Industry 2011-2013

A culmination of macro, competitive and regulatory pressures spurred M&A activity in the Technology, Media and Telecommunications (TMT) sector.


According to Thomson Reuters Deals Intelligence the energy and power sector was the most active sector during 2013, commanding 15% of announced M&A, while the real estate and telecommunications sectors accounted for 14% and 11% of M&A activity, respectively. Telecom and real estate led all sectors by growth rate with 122% and 44% increases over 2012, respectively, while financials and materials registered declines of 40% and 32% compared to 2012.

Energy & power sector M&A deals reached US$340.5 billion in 2013, a decline of 26% compared to year-to-date 2012. Activity was concentrated in the US, with US$139.1 billion from US energy M&A, or 41% of year-to-date volume. This marks the slowest year-to-date period for M&A in the sector since 2009 (US$337.8 billion).

Deal making in the real estate sector accounted for 14% of global M&A so far this year with US$322.5 billion of deals announced, up 39% compared to full year 2012 and the strongest year-to-date for merger activity in the sector since 2007 (US$426.4 billion).


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Financial sector acquisitions reached US$221.5 billion in 2013, down 42% from 2012. Activity was evenly balanced across regions with Europe accounting for 35%, and Asia Pacific and the Americas accounting for 27% and 23%, respectively. The continued threat of regulatory changes dulled M&A activity in 2013 and the finance sector saw the second highest decline compared to its peak year, down 60.3% compared to 2007 (US$ 582.8 billion). The only other decline larger than this was in leisure M&A which decreased 72.9% from its peak in 2006 (US$ 130.5 billion) to US$ 35.4 billion in 2013.

A culmination of macro, competitive and regulatory pressures spurred M&A activity in the Technology, Media and Telecommunications (TMT) sector, which saw large-cap M&A throughout 2013, with deals valued at US$ 510.1 billion, up 54.1% compared to 2012 (US$ 331.1 billion). As a result the share it had of global M&A increased to 23% from just 14.5% in 2012. Technology M&A during 2013 saw its highest value in six years at US$ 166.2 billion (2007 valued at US$ 164.8 billion), while media M&A deals valued US$ 92.1 billion, marking the third annual increase in value. Telecommunications M&A in 2013 reached the highest value in seven years (2006 valued at US$ 265.8 billion) with deals valued at US$ 245 billion.

The share of cross-border M&A deals in the sector targeting developing and transition economies increased from less than 4 per cent before 2006, to 10 per cent between 2010 and 2012, jumping to more than 18 per cent in 2013.

According to Unctad’s World Investment Report 2014 cross-border M&A deals in the pharmaceutical sector focussed on emerging markets, jumping to 18% in 2013. Unctad says the availability of vast reserves of overseas held retained earnings in the top pharmaceutical TNCs facilitates such deals, and signals further activity. During the first quarter of 2014, the transaction value of cross-border M&As ($23 billion in 55 deals) already surpassed the value recorded for all of 2013.

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Value of cross-border M&A purchases, by sector/industry 2011-2013 

Region/Economy

2011
Purchases

2011
Sales

2012
Purchases

2012
Sales

2013
Purchases

2013
Sales

Total
556 051
556 051
331 651
331 651
348 755
348 755
Primary
93 236
149 065
3 427
51 521
27 229
67 760
Agriculture, forestry and fishing
 381
1 426
-1 423
7 585
 318
7 422
Mining, quarrying and petroleum
92 855
147 639
4 850
43 936
26 911
60 338
Manufacturing
224 316
203 319
138 230
113 110
96 165
125 684
Food, beverages and tobacco
31 541
48 394
31 748
18 526
35 790
53 355
Textiles, clothing and leather
2 236
4 199
2 466
2 191
1 757
4 545
Wood and wood products
 118
2 065
 216
1 428
 500
 566
Paper and paper products
3 630
2 995
3 373
3 115
2 544
2 262
Publishing and printing
– 112
– 190
 65
 31
 16
 20
Coke, petroleum products and nuclear fuel
-2 625
-1 430
-3 748
-1 307
-2 003
– 663
Chemicals and chemical products
35 615
44 690
21 668
13 091
6 212
24 010
Pharmaceuticals
55 523
32 511
19 817
25 433
22 128
9 939
Rubber and plastic products
1 367
2 223
 581
1 718
 368
 760
Metals and metal products
19 449
5 687
9 820
9 662
 647
9 490
Electrical and electronic equipment
38 561
28 279
26 823
22 219
13 506
7 538
Motor vehicles and other transport equipment
10 899
4 299
5 039
6 913
1 058
1 234
Non-metallic mineral products
1 663
 927
 755
1 619
3 609
5 733
Machinery and equipment
14 564
14 251
12 836
1 291
6 804
5 296
Manufacture of furniture
1 976
 135
 100
 121
 39
 21
Other manufacturing
9 912
14 285
6 673
7 060
3 190
1 577
Services
238 499
203 667
189 993
167 020
225 361
155 311
Electricity, gas and water
6 758
21 100
3 116
11 984
7 739
9 988
Construction
-1 466
3 074
2 772
2 253
4 868
3 174
Trade
6 415
15 645
23 228
12 730
-1 591
-4 165
Accommodation and food service activities
 684
1 494
-1 847
– 411
 925
4 537
Transportation and storage
8 576
16 028
9 336
10 439
3 146
5 732
Information and communication
23 228
25 174
17 417
35 172
26 975
31 317
Finance
166 436
64 279
116 121
39 512
155 996
49 292
Business services
26 353
48 321
18 854
43 723
26 642
43 819
Public administration and defense
– 288
2 910
-1 165
3 602
-1 049
4 078
Education
 347
 953
 317
 213
-1 040
 76
Health and social services
 729
2 947
 954
6 636
2 315
4 091
Arts, entertainment and recreation
 526
1 404
 275
 971
 406
1 591
Other service activities
 199
 339
 615
 196
 29
1 780
Note: Cross-border M&A purchases are calculated on a net basis as follows: Purchases of companies abroad by home-based TNCs (-) Sales of foreign affiliates of home-based TNCs.  The data cover only those deals that involved an acquisition of an equity stake of more than 10%.  Data refer to the net purchases by the industry of the ultimate acquiring company.
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Number of cross-border M&A sales, by sector/industry, 2011-2013 

Sector/Industry

2011
Sales

2011
Purchases

2012
Sales

2012
Purchases

2013
Sales

2013
Purchases

Total
10 397
10 397
9 794
9 794
8 624
8 624
Primary
1 150
 783
 959
 638
 732
 474
Agriculture, forestry and fishing
 124
 66
 99
 64
 107
 47
Mining, quarrying and petroleum
1 026
 717
 860
 574
 625
 427
Manufacturing
2 911
2 485
2 819
2 258
2 459
1 965
Food, beverages and tobacco
 383
 293
 367
 274
 337
 266
Textiles, clothing and leather
 95
 68
 105
 60
 76
 63
Wood and wood products
 152
 93
 121
 81
 131
 78
Publishing and printing
 37
 28
 23
 14
 19
 8
Coke, petroleum products and nuclear fuel
 34
 23
 29
 23
 19
 18
Chemicals and chemical products
 551
 431
 488
 398
 455
 386
Rubber and plastic products
 95
 54
 102
 47
 82
 41
Non-metallic mineral products
 108
 94
 87
 79
 97
 59
Metals and metal products
 303
 241
 269
 217
 238
 169
Machinery and equipment
 319
 294
 323
 263
 297
 232
Electrical and electronic equipment
 469
 521
 548
 520
 403
 398
Motor vehicles and other transport equipment
 174
 189
 175
 155
 147
 138
Other manufacturing
 191
 156
 182
 127
 158
 109
Services
6 336
7 129
6 016
6 898
5 433
6 185
Electricity, gas and water
 422
 239
 356
 200
 323
 169
Construction
 194
 123
 171
 108
 155
 93
Trade
 783
 493
 773
 496
 673
 413
Accommodation and food service activities
 220
 81
 217
 60
 216
 55
Transportation and storage
 438
 254
 423
 217
 370
 205
Information and communication
 902
 677
 827
 648
 734
 565
Finance
1 088
3 882
1 030
3 892
 876
3 515
Business services
1 941
1 173
1 878
1 049
1 736
 925
Public administration and defense
 22
 71
 19
 89
 11
 85
Education
 53
 30
 43
 21
 53
 21
Health and social services
 156
 46
 142
 55
 174
 63
Arts, entertainment and recreation
 68
 33
 99
 40
 68
 38
Other service activities
 49
 27
 38
 23
 44
 38
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