Mergers and acquisitions activity in the Americas cooled last year amid ongoing uncertainty over global macroeconomic conditions, with a 38% Y/Y decline in value of such transactions during the year, according to ION Analytics.
There were 10,581 deals worth a combined $1.8T across the Americas last year, down 8% in terms of volume. However, total deal value in 2022 almost matched pre-pandemic levels (2019), while volume was up 37%.
Sectorwise breakdown:
- The telecoms, media and technology sector saw the most deals in 2022, accounting for 36% of all capital invested across the Americas. Deal volume declined just 10% at 3,105 transactions, while M&A value dropped 41% to $639.9B. Three of the largest deals were Microsoft’s (MSFT) ongoing bid for Activision Blizzard (ATVI), Broadcom’s (AVGO) planned acquisition of VMware (VMW), and Elon Musk’s Twitter purchase.
- The pharmaceutical sector was second on the leaderboard, registering $234.5B worth of transactions in 2022, down 29%, while volume slipped 4% to 1,342 deals. Amgen (AMGN) took the top deal spot with its $28.3B takeover of Horizon Pharma.
- Energy, mining and utility firms were among the stronger performing sectors in 2022, the report said. Total deal value fell 24% to $204.8B, a less sharp drop than other sectors. In volume terms, it was the only sector that saw a Y/Y increase, up 12% at 764 deals. Phillips 66 (PSX) was responsible for the largest deal, with its bid for all publicly held units of DCP Midstream (DCP).
- Real estate was one of the only bright spots last year, seeing a 9% increase in volume at 111 deals. It also saw one of the smallest annual declines in deal value, down 21% at $109B. The biggest deal last year was Prologis (PLD) acquiring Duke Realty for $22.8B.
- The financial services sector’s M&A volume was resilient through 2022, down 6% at 911 deals. But on a value basis, it was the weakest performer, delivering $125.9B, down 59%. Topping the list was Toronto-Dominion Bank’s (TD) $13.4B takeover of First Horizon National (FHN).
- In the industrials and chemicals sector, total M&A value declined 43% to $176.5B, while volume fell 18% to 1,291 deals. The biggest deal was Apollo’s (APO) bid for Brazilian petrochemical producer Braskem (BAK).
- The consumer sector saw the least number of deals as high inflation forced companies to reel in spending. Volume declined 21% Y/Y to 680 deals in 2022, while their overall value fell to $88B. Almost a third of this number came from a single deal – Kroger (KR) acquiring Albertsons (ACI) for $24.8B.
Earlier, big pharma is expected to ramp up deal-making and market consolidation in the short-to-medium-term, according to Fitch Solutions.