M&A Deal Activity Down for February, Spending Up

U.S. M&A deal activity decreased in February, going down 24.7% with 834 announcements compared to 1,107 in January. However, aggregate M&A spending increased. In February, 9.2% more was spent on deals compared to January.

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: Consumer Durables (64 vs. 62), Non-Energy Minerals (71 vs. 70), Communications (43 vs. 42), and Government (6 vs. 5). 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.

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 (452 vs. 574), Finance (351 vs. 418), Health Services (144 vs. 193), Retail Trade (85 vs. 131), and Producer Manufacturing (181 vs. 222). 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 507 deals.

Topping the list of the largest deals announced in February are:

• Reckitt Benckiser Group Plc signing a merger agreement to acquire Mead Johnson Nutrition Co. for $16.5 billion;
• ONEOK, Inc. agreeing to acquire the remaining 60% stake in ONEOK Partners LP for $9.3 billion;
• Blackstone Group LLP's agreement to acquire Aon Plc's employee benefits outsourcing unit for $4.8 billion;
• Advent International Corp.'s offer to acquire STADA Arzneimittel AG $3.8 billion;
• SoftBank Group Corp. agreeing to acquire Fortress Investment Group LLC for $3.1 billion.

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