M&As plunge to four-year low
The latest figures on global dealmaking reveal the credit crisis has strangled M&A activity in the first quarter
Financial research show the amount of M&A deals announced globally
plunged by 31%, to $661bn (£330bn) in the first quarter this year because of the
liquidity crisis. In the UK, the total value of the deals announced fell 40%, to
UK’s top dealmakers in the in the period were Goldmans Sach, Citigroup and
Lehman Bros. They benefited from advising the Chinese on their $14bn grab of a
9% stake in mining giant Rio Tinto, The Daily Telegraph reports.
Thomson’s research shows global buyout activity reached a four-year low after
six years of continuous growth.
The private equity sector in particular was hard hit by the liquidity crisis,
reflected in a 77% slump in the value of deals announced around the world in the
first three months, to just $43.5bn.