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Powered by Dealogic data, M&A Highlights reviews M&A activity across North America, EMEA and APAC in 2022 to date. All data correct as at 30th September 2022.

How low can it go? Global M&A plunges again in 3Q22

Mergers and acquisitions took a sharper downturn in the third quarter as the world continued to grapple with soaring inflation and hopes of a soft landing evaporated.

If 2022’s fourth quarter is anything like its third, then 2022 may struggle to beat pandemic-ravaged 2020’s tally of USD 3.6tn. For the first nine months of 2022, global transactions reached USD 2.97tn – about a third down from the same period during 2021’s record year and roughly level with the comparable period in pre-pandemic 2019.

Global dealmaking in 3Q22 dropped to USD 722bn – a 54% decline from a year earlier and 38% down sequentially from 2Q22. The 6,916 transactions in 3Q22 were also 32% lower year-on-year and 26% down sequentially. It makes 3Q22 the worst quarter since 2Q20, when the start of the pandemic halted dealmaking.

The 3Q22 slowdown affected all regions. North America fared worst, with M&A plunging by 63% year-on-year to USD 273bn as summertime hopes of a stock market rebound ebbed when the Federal Reserve doubled down on monetary tightening to tamp stubborn inflation. Europe’s fell by 41% to USD 207bn over the same period as an energy crisis roiled the continent. Asia-Pacific fell by 51% to USD 192bn as China’s zero-Covid policy gummed up supply chains and a real estate crisis threatened its economy.

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