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Global M&A activity surges toward record high
August 14, 2015 / 12:02 PM / 2 years ago

Global M&A activity surges toward record high

LONDON (Reuters) - Global mergers and acquisitions (M&A) have climbed close to a record high this year, accelerated by a trio of multibillion-dollar deals in the U.S., Thomson Reuters data showed.

Berkshire Hathaway CEO Warren Buffett participates in a newspaper throwing contest prior to the Berkshire annual meeting in Omaha, Nebraska May 2, 2015. REUTERS/Rick Wilking

The largest of these was Warren Buffet’s $30 billion-plus purchase of Precision Castparts PCP.N, announced on Monday. The takeover is the biggest by Buffet’s Berkshire Hathaway (BRKa.N).

So far this year, $2.9 trillion in deals have been announced globally, only 3 percent below the $3 trillion record peak in 2007.

Domestic M&A in the U.S. has reached a total of $1.4 trillion, a 62 percent increase on this time last year.

Acquisitions of U.S. companies account for almost half of the total worldwide value of deals in dollars terms.

In the Asia Pacific region, dealmaking is off to its best start for the year since records began, outpacing Europe for the first time and making up 23 percent of global dealmaking.

But on Tuesday, the Chinese central bank devalued its currency, causing volatility across global financial markets.

It is unclear yet whether these measures, coupled with a slowdown in China, could diminish the appetite for takeovers in the region.

Reporting by Emiliano Mellino. Editing by Jane Merriman

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