Global deal activity showcased decline during week ended June 14

A total of 1,136 deals were announced globally during the week ended June 14, 2020, which is a decrease of 3.8% over 1,181 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 this decline was after the growth witnessed during the previous week. Moreover, it is still lower than the Q1 2020 weekly average levels. However, the number of deals announced during the week was more than the weekly average levels of April and May 2020.”

Deal activity has also remained inconsistent across geographies since the COVID-19 outbreak. Deal volume declined in markets such as the UK (by 12.6%), Canada (15.5%), Australia (39.5%) and India (20%) during the week ended June 14, 2020 compared to the previous week. Meanwhile, the US, China and South Korea witnessed growth in the number of announced deals by 10.8%, 0.9% and 1.9%, respectively.

Deal activity in sectors such as retail declined during the week ended June 14, 2020 compared to the previous week while healthcare (including pharmaceuticals and medical equipment) and travel & tourism sectors witnessed improvement.

Deal types such as mergers and acquisitions (M&A), private equity, equity offerings and debt offerings witnessed decline in deal volume by 8.3%, 13.6%, 15.7% and 6.5%, respectively, during the week ended June 14, 2020 compared to the previous week, while the number of venture financing and partnership deals increased by 7.9% and 23.8%, respectively.

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