(USA) Cross-Market Commentary: M&A Is Booming, But Which Industry Is Booming The Most? (Standard & Poor's, 22 febbraio 2013)
The quickened pace of U.S. merger and acquisition (M&A) activity recently has excited many in the financial community. Overall U.S. deal making early in the year has reached volume totals in 2013 not seen since 2005--but how have specific industry groups performed? Using S&P Capital IQ data, the Global Markets Intelligence (GMI) group decided to investigate whether the current wave of mergers is running across all industries or concentrated in a select few. By doing so, we hope to suggest which sectors deal makers and financial advisors should focus on for upcoming transactions.
We looked at the volume of announced U.S. M&A deals by industry group for Feb. 20, 2012, to Feb. 20, 2013, compared with Feb. 20, 2011 to Feb. 20, 2012. Over the past year, U.S. M&A activity totaled $1.025 trillion, a greater than 11% increase from the preceding one-year period's deal total of $918.4 billion (see table). Yet, of 10 key industry groups, only five have experienced year-over-year gains in deal proceeds--including a $109.3 billion jump in the consumer discretionary sector--while the remaining five industry groups have posted double-digit percentage declines in deal proceeds, the largest being a $53.5 billion drop off in health care deals. In fact, excluding deals in the consumer discretionary sector, U.S. M&A volume is fractionally lower over the course of the past year compared with the prior one-year period.
So although deal making is on the rise overall, not all industries are experiencing the boom.
| U.S. Announced M&A | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2/20/11 to 2/20/12 (Bil. $) | 2/20/12 to 2/20/13 (Bil. $) | % Change | ||||||
| Financials | 214.6 | 221.9 | 3.40 | |||||
| Consumer discretionary | 62.8 | 172.1 | 174.04 | |||||
| Energy | 155 | 129.1 | (16.71) | |||||
| Industrials | 84.9 | 108.8 | 28.15 | |||||
| Health care | 160.7 | 107.2 | (33.29) | |||||
| Information technology | 114.6 | 92.1 | (19.63) | |||||
| Consumer staples | 15.3 | 70.3 | 359.48 | |||||
| Telecommunications | 11.4 | 54.8 | 380.70 | |||||
| Materials | 48.3 | 40 | (17.18) | |||||
| Utilities | 44.6 | 17.2 | (61.43) | |||||
| Others/undisclosed | 6.2 | 11.5 | 85.48 | |||||
| Total | 918.4 | 1025 | 11.61 | |||||
| Total excluding consumer discretionary | 855.6 | 852.9 | (0.32) | |||||
| Source: S&P Capital IQ | ||||||||