M&a Spotlight: Cross Border Deals

August 18, 2012 /

Cross border deals involve acquirers or investment group members that are headquartered outside of the US. FactSet MergerMetrics has recorded a total of 453 public(1)(2)(3) cross border transactions since 2003, with 57% of the activity transpiring between the years 2005 and 2008 (2007 being the busiest, accounting for 20% of the total public cross border deals announced).

Of the announced public cross border transactions, which were 88% strategic (334 deals) and 12% financial (45 deals) in nature, 379 executed definitive merger agreements. 345 of these transactions were successful; 13 are still pending(2), and; 21 terminated, primarily due to competing bids (48% of cancellations) and lack of regulatory approval (19% of cancellations).

United Kingdom was the most acquisitive nation both by number of agreed public cross border deals (57 total) and by aggregate dollar amount of agreed public cross border deals ($81.231 bil in total value).

Canada ranked second in the list of acquirers with the most number of transactions with 54 total; followed by Japan and France, tied for third, with 30 deals apiece. In terms of aggregate dollar amount, Germany was the second most acquisitive with $65.88 bil worth of deals; followed by France, in third, with $56.72 bil in transactions.

 

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