January M&A Activity Up 12.7% From December

U.S. M&A deal activity increased in January, going up 12.7% with 1,086 announcements compared to 964 in December 2016. However, aggregate M&A spending decreased in January, with 31.6% less spent on deals compared to December.

Over the past three months, the sectors that have seen the biggest increases in M&A deal activity, relative to the same three-month period one year ago, have been: Process Industries (129 vs. 103), Consumer Non-Durables (105 vs. 95), Non-Energy Minerals (59 vs. 54), Utilities (86 vs. 81), and Transportation (60 vs. 57). Six of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months compared to the same three months one year prior.

Over the past three months, the sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago have been: Commercial Services (463 vs. 599), Finance (377 vs. 442), Health Services (146 vs. 199), Distribution Services (147 vs. 183), and Consumer Services (210 vs. 243). Fourteen of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over the last three months compared to the same three months one year prior, for a combined loss of 456 deals.

 Topping the list of the largest deals announced in January were:

• Mars, Inc. entering into an agreement to acquire VCA, Inc. for $7.6 billion
• Takeda Pharmaceutical Co. Ltd.'s agreement to acquire ARIAD Pharmaceuticals, Inc. for approximately $4.7 billion
• AltaGas Ltd. agreeing to acquire WGL Holdings, Inc. for $4.5 billion
• Cisco Systems, Inc.'s intent to acquire AppDynamics, Inc. for approximately $3.7 billion
• Noble Energy, Inc.'s agreement to acquire Clayton Williams Energy, Inc. for $2.7 billion.

U.S. private equity activity decreased in Janaury, down 10.4% from December 2016. There were 103 deals in Janaury compared to 115 in December. Aggregate transaction also decreased, down by 33.9% to $15.3 billion from December's $23.2 billion.

FactSet Flashwire Monthly Report

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