Global deal activity inconsistent due to COVID-19; volumes decline

The number of deals announced worldwide fell by 12.9% during the week ended May 24

  
Workers celebrate the during closing bell, as they prepare for the return to trading, on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 22, 2020.

Workers celebrate the during closing bell, as they prepare for the return to trading, on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 22, 2020.

REUTERS/Brendan McDermid

Global deal activity has been inconsistent due to volatile market conditions triggered by the pandemic.

The number of deals announced worldwide fell by 12.9 percent during the week ended 24 May to a total of 1,030, according to GlobalData’s deals database.

“Global deal activity has remained inconsistent due to volatile market conditions since the COVID-19 outbreak and this decline came after growth in deal volume witnessed during previous week,” Aurojyoti Bose, Lead Analyst at GlobalData said.

“The number of deals announced during the week was also lower than the Q1 2020 and April 2020 weekly average levels,” Bose said.

In Q1 2020, the weekly average number of deals stood at 1,438 while for April 2020, the weekly average reached 1,108.

The deal volume declined in markets such as the US (17.5 percent), Australia (24.6 percent), South Korea (57.1 percent), Germany (57.5 percent) and France (15.8 percent) during the week ended May 24 compared to the previous week.

China witnessed a growth in the number of announced deals by 11.4 percent, the UK by 21.1 percent and Canada by 2.1 percent.

Sectors such as retail and travel and tourism saw a decline in deal activity during the week ended May 24, while the healthcare sector witnessed marginal improvement.

Mergers and acquisitions, private equity and licensing agreements witnessed a decline in deal volume by 17.4 percent, 42.2 percent and 40.9 percent respectively during the period according to GlobalData. Venture financing, partnership and equity offering deals increased by 0.7 percent, 10.4 percent and 7 percent respectively.

(Writing by Gerard Aoun; editing by Seban Scaria)

( gerard.aoun@refinitiv.com )

#Deals #Economy #COVID-19 #GlobalData

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