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M&A Deal Activity Down for February, Spending Up

Written by FactSet Mergers Staff | Mar 23, 2017

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.

 Target Sector  L3M 2/28/17
Deal Count
L3M 2/29/16
DEal Count
DIfference 
Consumer Durables 64 62 2
Non-Energy Minerals 71 70 1
Communications 43 42 1
Government 6 5 1
Indutrial Services 135 135 0
Process Industries 114 116 (2)
Misc. 13 18 (5)
Consumer Non-Durables 91 97 (6)
Transportation 56 64 (8)
Utilities 71 85 (14)
Energy Minerals 43 58 (15)
Electronic Technology 84 103 (19)
Health Technology 109 129 (20)
Technology Services 453 480 (27)
Consumer Services 212 240 (28)
Distribution Services 150 188 (38)
Producer Manufacturing 181 22 (41)
Retail Trade 85 131 (46)
Health Services 144 193 (49)
Finance 351 418 (67)
Commercial Services 452 574 (122)
Total 2,928 3,430 (502)


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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