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Global value of mergers and acquisitions declines year on year

CzechInvest has published the M&A Report for the fourth quarter of 2019

Global value of mergers and acquisitions declines year on year Source: Adobe Stock

The new issue of the M&A Report maps trends in the mergers and acquisitions market in the last quarter of 2019. The full version of the report is available for download below.

A slight year-on-year decline in the global value of mergers and acquisitions, from USD 3.96 trillion to USD 3.9 trillion, was recorded in 2019. This was due in part to a decline in the number of foreign agreements, which was partially offset by the growth of major agreements whose value was in excess of USD 10 billion. The value of foreign acquisitions totalled USD 1.2 trillion in 2019, a 25% year-on-year decrease and the lowest value since 2013. This decline was primarily due to stricter controls imposed by regulatory authorities and the deteriorating geopolitical situation in the world.

With an approximately 50% share (USD 1.8 trillion), the United States remains the world’s largest M&A market, followed by Europe and Asia with transactions in the value of approximately USD 740 billion.

In the Czech Republic, there is rising interest in the sale of companies due to concerns that the slowing economy will have a negative impact on the conditions for future sales.

The Czech M&A market registered the strongest activity in the real-estate sector, in which 97 transactions were closed, followed by industry and services with 68 transactions and the retail & consumer goods & entertainment sector with 41 deals closed.

An example of the interesting transactions on the Czech market is the acquisition of the building society and mortgage bank Wüstenrot, which is being taken over by Moneta Money Bank. The merger of the two largest Czech travel agencies, Exim Tours and CK Fisher, is being prepared and Petr Kellner’s PPF financial group is acquiring the Czech television operator TV Nova. Details of selected mergers and acquisitions are available in the attached report.

The M&A Report also contains news from the CzechLink capital-participation project, which has been in operation since August 2018. The project supports mergers, acquisitions and joint-venture partnerships between local and foreign investors and domestic parties interested in investments. It also provides an overview of anonymised companies registered in the CzechLink project.

The M&A Report is published in electronic form on a quarterly basis. The next issue will be available in the second quarter of 2020. If you would like to receive the report directly, please contact czechlink@czechinvest.org.