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M&A Activity Down in July

M&A and Corporate Activism

By FactSet Mergers Staff  |  August 23, 2016

US M&A deal activity decreased in July, down 5.0% with 930 announcements compared to 979 in June. Aggregate M&A spending decreased as well. In July, 4.6% less was spent on deals compared to June.

 

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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 (135 vs. 121)
  • Non-Energy Minerals (65 vs. 60)
  • Government (8 vs. 4)
  • Consumer Durables (56 vs. 52)
  • Communications (43 vs. 42)

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.

Sector by Activity
Target Sector

L3M 7/31/16 

Deal Count

L3M 7/31/15 

Deal Count

Difference
Process Industries 135 121 14
Non-Energy Minerals 65 60 5
Government 8 4 4
Consumer Durables 56 52 4
Communications 43 42 1
Industrial Services 131 130 1
Utilities 61 61 0
Miscellaneous 8 8 0
Energy Minerals 38 43 (5)
Consumer Non-Durables 87 106 (19)
Producer Manufacturing 173 193 (20)
Electronic Technology 107 133 (26)
Health Technology 106 133 (27)
Transportation 51 82 (31)
Retail Trade 98 137 (39)
Distribution Services 131 188 (57)
Health Services 145 209 (64)
Consumer Services  192 292 (100)
Finance 363 473 (110)
Commercial Services 412 524 (112)
Technology Services  429 552 (123)
Total 2839 3543 (704)

 

Deal Volume

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:

  • Technology Services (429 vs. 552),
  • Commercial Services (412 vs. 524),
  • Finance (363 vs. 473),
  • Consumer Services (192 vs. 292),
  • Health Services (145 vs. 209).

Thirteen 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 733 deals.

The Big Deals of June

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

  • NextEra Energy, Inc's agreement to acquire Energy Future Holdings Corp. from Texas Energy Future Holdings LP $18.4 billion
  • Analog Devices Inc. agreeing to acquire Linear Technology Corp. for $14.4 billion
  • Danone SA's deal to acquire The WhiteWave Foods Co. for $10 billion
  • Oracle Corp's agreement to acquire NetSuite, Inc. for $8.8 billion
  • Verizon Communications Inc. agreeing to acquire the Yahoo! Inc.'s operating business for $4.8 billion

US private equity activity decreased in July, down 7.7% from June. There were 96 deals in July compared to 104 in June. Aggregate transaction value also decreased, down by 6.1% to $18.8 billion from June's $20.0 billion.

Related: Uncertainty Reigns Over Brexit’s M&A Impact

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