Global deal-making plunges to 18-year low in April amid Covid-19 pandemic

30, Apr. 2020

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NEW DELHI, NNA- Global deal-making in April fell to an 18-year low with the markets such as Europe and the United States reporting lower merger and acquisition transaction amounts as the Covid-19 pandemic disrupts corporate activities, according to financial market data provider Refinitiv.

The combined deal value of $69 billion announced internationally in April – down 72 percent from March – is the lowest monthly total since September 2002, Refinitiv said in a statement.

Just nine deals worth $1 billion announced in April compared to 56 in the same month last year, the preliminary M&As data released Wednesday shows.

Buyers, sellers and negotiators are putting deal talks on hold as companies try to understand better how the pandemic will affect their income, business news and research website ChannelE2E said April 15.

Over the first four months of the year, $789.8 billion worth of deals have been announced globally, down 39 percent compared to the same period of last year and the lowest year-to-date figure since 2013, Refinitiv said.

Combined deal value in the Asia Pacific declined in April to a three-month low of $43.8 billion.

Activity slumped the most in markets hit hard by the pandemic, Refinitiv’s data show.

Deals involving a United States target totaled $12.6 billion in April, the lowest amount since the global financial crisis month of February 2009, Refinitiv said. It said deals involving a European target reached $6.1 billion, dropping 91 percent from March to the lowest monthly total since August 1992.