M&A worth US$800 billion leaked in last year’s deals slump

INFORMATION on one in three deals worth US$2 billion or more leaked to the media last year, even as mergers and acquisitions slumped across the globe.

In total, markets were tipped off to just shy of US$800 billion of transactions over the period, according to a Monday (Jul 10) report from strategic communications firm H/Advisors.

Asia-Pacific was the most porous region, with more than half of deals being detailed before announcement. Western Europe was the next leakiest market at around 48 per cent, followed by the US at just 28 per cent.

“Mergers and acquisitions rank among the most significant and complex events that any corporate leader or boardroom can face,” said Neil Bennett and Tom Johnson, global co-chief executive officers of H/Advisors. “Any business needs to be well-prepared for media interest right from the start of an M&A process.”

Most deal leaks correctly reported the names of parties involved, though accuracy on valuations varied more, according to H/Advisors. The worst sectors for leaks included aerospace and defence, retail, food and tobacco.

Dealmaking tailed off around the world last year after a record-breaking 2021, with inflationary pressures and geopolitical tensions weighing heavily on activity. The downturn has continued into 2023, with bankers having just worked through one of their worst first-half periods in a decade. BLOOMBERG