21 May 2020
Posted in Business Fundamentals
Global deal activity rebounded with 5.6% increase during week ended May 17
A total of 1,183 deals were announced globally during the week ended May, 17, 2020, which is an increase of 5.6% over 1,120 deals announced during the previous week, according to GlobalData’s deals database.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Global deal activity has remained inconsistent due to volatile market conditions since the COVID-19 outbreak and the growth this week comes after the decline observed during the previous week. The number of deals announced during the week was also more than the weekly average levels of April 2020. However, it is still lower than the Q1 2020 weekly average levels.”
Deal activity increased in some of the key markets during the week ended May 17, 2020 compared to the previous week. Deals volume increased in China (by 11.4%), the UK (1.4%), Canada (6.8%), India (6.7%) and Germany (48.1%). Meanwhile, the US, Australia and France witnessed decline in the number of announced deals by 2.6%, 10.9%, and 20.8%, respectively.
Deal activity in the retail sector improved during the week ended May 17, 2020 compared to the previous week while sectors such as healthcare (including pharmaceuticals and medical equipment) and travel & tourism witnessed decline.
Most of the key deal types witnessed growth in deal volume. While private equity and venture financing deals volume increased by 25.5% and 12.8% during the week ended May 17, 2020 compared to the previous week, the number of equity offerings, licensing agreement and debt offering deals increased by 11.7%, 22.2% and 21.6%, respectively. However, the number of mergers and acquisitions (M&A) and partnership deals decreased by 11.7% and 30.4%, respectively.