June Merger Activity Slower than in 2016, Spending Up

Companies and Markets

By FactSet Mergers Staff | July 25, 2017

U.S. M&A deal activity decreased in June, down 7.4% with 894 announcements compared to 965 in May. At the same time, aggregate M&A spending increased; in June, 22.0% more was spent on deals compared to May.

Over the past three months, these sectors that have seen the biggest increases in M&A deal activity, relative to the same three-month period one year ago: Distribution Services (159 vs. 152), Transportation (64 vs. 58), Miscellaneous (16 vs. 13), and Government (10 vs. nine). Four 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.

Sector By Activity
Target Sector	L3M 6/30/17 Deal Count	L3M 6/30/16 Deal Count	Difference
Distribution Services	159	152	7
Transportation	64	58	6
Miscellaneous	16	13	3
Government	10	9	1
Finance	367	367	0
Energy Minerals	40	41	(1)
Utilities	69	72	(3)
Non-Energy Minerals	58	62	(1)
Consumer Services	214	219	(5)
Retail Trade	99	104	(5)
Electronic Technology	82	89	(7)
Consumer Durables	46	61	(15)
Consumer Non-Durables	67	83	(16)
Communications	29	52	(23)
Health Technology	93	117	(24)
Industrial Services	123	149	(26)
Process industries	106	133	(27)
Producer Manufacturing	160	193	(33)
Technology Services	427	468	(41)
Health Services	122	164	(42)
Commercial Services	376	468	(92)
Total	2,772	3,074	(347)

Over the past three months, these sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago: Commercial Services (376 vs. 468), Health Services (122 vs. 164), Technology Services (427 vs. 468), Producer Manufacturing (160 vs. 193), and Process Industries (106 vs. 133). Sixteen 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 364 deals.

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

Amazon.com, Inc. agreeing to acquire Whole Foods Market, Inc. for $13.4 billion
Sycamore Partners Management LP's agreement to acquire Staples, Inc. for $6.7 billion
EQT Corp. entering an agreement to acquire Rice Energy, Inc. for $5.6 billion
Walgreens Boots Alliance, Inc. agreeing to acquire 2,186 stores and three distribution centers from Rite Aid Corp. for $5.2 billion
Digital Realty Trust, Inc.'s deal to acquire DuPont Fabros Technology, Inc. for $5 billion

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