Cross-Border Bulletin: July 2020 – Trends and Drivers Impacting Global M&A
Global cross-border M&A volumes in H1 2020 were impacted by the economic ramifications from the COVID-19 health crisis, decreasing 39% year-over-year to $208 billion. Quarantine measures in developed economies, weak consumer confidence and volatility in the public debt and equity markets combined to form strong headwinds to deal activity. A total of 66 announced transactions have been terminated since the Word Health Organization declared a global pandemic. Moreover, governments in the U.S., Europe and Asia have begun introducing new barriers to foreign investment to shield domestic industries from opportunistic acquirors. These measures signal the beginning of heightened protectionism for global M&A, which we anticipate will last beyond the current pandemic.
Despite the headwinds, we continued to see several large cross-border transactions announced, particularly between the U.S. and Europe. Even as the road to recovery remains uncertain, we are encouraged by the positive trends in cross-border activity.
This semiannual report highlights key trends and drivers impacting global M&A. Particular themes discussed in this issue include:
- Challenges Loom to Cross-Border M&A
- European M&A Gains Share
- New Demand for ESG Products in the Leveraged Loan Market
- CFIUS Update
- Country Focus: Saudi Arabia
- Sector Focus: Transportation