Europe sets pace for global M&A as politics hurts US deals

London

EUROPE, often a laggard compared to the US in mergers and acquisitions, has turned out to be the hot spot for deals this year. A more stable economic outlook and growing confidence in Europe has boosted dealmaking activity in the region, while in the US, the unresolved battle to lower US corporate tax rates and fewer blockbuster deals have contributed to lower volumes. Buyers have announced US$680 billion of acquisitions targeting European companies in 2017, up 23 per cent from last year's total, according to data compiled by Bloomberg.The year is ending on a high note for both European suitors and targets.

By contrast, the value of announced deals in North America has fallen almost 30 per cent to US$1.1 trillion this year - the lowest since 2013 - and Asia is fairly flat at US$626 billion. While North America still accounts for 44 per cent of global M&A volumes, that's down by almost a tenth from this time last year and the smallest proportion since 2010. Europe, meanwhile, is at a six-year high, contributing 27 per cent of total dealmaking.