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JPMorgan: global M&A market will maintain robust growth in 2019

CFBOND
2019-01-19 13:53

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The U.S. investment banking giant JPMorgan Chase published its outlook for the development of the global M&A market in 2019 on Thursday, predicting that the market will maintain a strong growth momentum with Chinese enterprises expected to play a prominent role, the China Securities Journal reported.

The report reveals that the global M&A market had maintained a robust development last year with the total transaction volume reaching 4.1 trillion U.S. dollars, which was the third-highest point in history.

Driven by the increase in the number of the so-called large-scale M&A deals, which refer to deals worth more than 10 billion U.S. dollars, the total global transaction volume hit 2.4 trillion U.S. dollars over the first half of 2018, the second-highest point compared with the same period in history.

There was a total of 30 large-scale M&A deals worldwide during the first six months of 2018, a number which was the highest compared with the same period in history and more than twice as many as the number for the first half of 2017.

What's more, the number of deals worth more than 250 million U.S. dollars also rose 7 percent from the previous year in 2018, with deals of various types, including domestic M&A, cross-border M&A, strategic investment and private equity (PE), all keeping active last year.

The report projects that the global M&A market will continue such strong momentum in 2019 with deals worth between 1 billion and 10 billion U.S. dollars as its major drivers.

When it comes to specific industries, the report finds that the number of M&A deals happening in technology and healthcare industries accounted for about one-third of the total deals worldwide last year.

The report projects that the global M&A deals will maintain such robust momentum in 2019 with Chinese firms to play a more active role.

Given that the exchange rate of Chinese currency Renminbi has started to stabilize and the cross-border cooperation has become an irreversible trend, the report says that Chinese enterprises are expected to launch more overseas M&A efforts to acquire new technologies, global brands, distribution networks and key natural resources this year.
 
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