The FINANCIAL — Thomson Reuters has released the final third quarter 2010 global reviews for mergers and acquisitions and capital markets activity.
The value of global mergers & acquisitions (M&A) reached US$1.75tr during the first nine months of 2010, an increase of 21% over last year, the strongest nine month period for M&A since the third quarter of 2008. Emerging markets M&A accounted for 27.4% of global M&A volume, up from 21% last year. The energy & power sector proved the most active, taking 20.5% of announced M&A. Private equity backed M&A totalled US$149.7bn, the largest quarter since the second quarter of 2008. Goldman Sachs is the top advisor for M&A globally for 2010 year-to-date with US$399.2bn in proceeds from 263 deals.
"Equity capital markets (ECM) activity totaled US$506.7bn globally during the first nine months of 2010, marking a 9% decrease from the first half of 2009. IPOs saw their strongest opening nine months since 2007, as global volumes reached US$146.6bn with emerging market issuers accounting for 62% of IPO volumes. Follow-ons, however, registered an 18% increase from the second quarter of 2010 with a year-to-date value of US$299.1bn, compared to US$446.8bn during the first nine months of 2009. JP Morgan led global equity underwriters for the first nine months of 2010, with US$40.6bn in proceeds from 235 issues," Thomson Reuters reports.
Overall global debt capital markets (DCM) activity totaled US$1.3tr during the third quarter of 2010, a 22% increase from the second quarter. The volume of corporate high yield debt reached US$79.3bn; breaking the all-time annual record for highest volume for quarterly issuance since Thomson Reuters records began in 1980. New issuance of asset-backed and mortgage-backed securitizations totaled US$132.0bn and US$400.7bn respectively during the first nine months of 2010 with combined issuance up 39% from the same time period last year. Barclays Capital took the top spot for global debt underwriting for the first three quarters of 2010 with total proceeds of US$305.3bn and total imputed fees of US$801mn.
Global investment banking fees year to date reached US$56.1bn* up from US$49.9bn compared to the first nine months of 2009. M&A fees drove the overall investment banking fee pool in the third quarter with 36%. For the first nine months of the year, fees from completed M&A transactions have increased 40% over the first nine months of 2009.
"Despite some ongoing uncertainty about global underlying macro-economic conditions, the current state of affairs is a significant improvement on the market sentiment that began the year. Confidence is returning in deal-making and the drivers of activity, such as the renewed impetus of financial sponsors, a return to strategic M&A and a robust corporate bond market, are complimented by the ever-increasing importance and presence of the emerging and fastest growing markets on the world stage," said Neil Masterson, Global Head of Investment Banking at Thomson Reuters.
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