"Europe continues to outstrip the US in deal volumes, but when US companies enter the M&A market, they are doing so in size - 5 of the year's top 10 deals featured a US company as the buyer."
Gregory J. Stemler, Consumer Products Transactions Leader, Americas
Summary: Europe once again dominated cross-border transactions in terms of deal volume, although the region's share of the total dipped from 48% to 42% and the number of deals decreased to 54 deals. While ceding ground to Europe in volume terms, US involvement in the quarter's biggest deals meant North America accounted for the lion's share of deal value.
There were 130 cross-border deals in Q4 10, an increase of 11 deals (9.2%) compared with Q3 10. Of the cross-border deal value, 54% is derived from North America in Q4 10, while that region accounts for only 24% of the number of deals (31 deals). This is largely the result of the US$3.6b WBD Foods transaction, with a Russian seller and a US buyer (PepsiCo).
Europe accounts for 42% (54 deals) of the total cross-border deals in Q4 10, but accounts for only 27% of the total disclosed value. We note that 43 of the 78 cross-border deals with an undisclosed value in Q4 10 were made by a European buyer.
The value of Asia-Pacific-disclosed cross-border deals decreased from US$4.5b in Q3 10 to US$2.0b in Q4 10, despite an increase in volume from 25 deals to 40 deals.
In Q4 10 2010, transactions involving Brazil, Russia, India, China (BRIC countries) increased by 35% (22 deals) to 85 deals. The increase in deal volume was led by Russia, with a 58% increase to 41 deals in Q4 10, which was higher than the total deal volume in both 2009 (22 deals) and 2008 (22 deals). The increase in Russia was driven largely by in-border transactions, although foreign sales also increased.
The total volume of BRIC deals, both cross-border and in-border, reached 254 transactions, almost double 2009's total of 128 transactions. Once again, it was the number of in-border deals that was driving the expansion. In-border deals increased by 174% in 2010 compared with 2009, while foreign sales increased by 39% and foreign acquisitions by 32%.
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