Consumer products deals activity overview

Europe leads in cross-border deals, but US most active overall

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Similar to Q2 12, the US was the most active deal-making nation in the third quarter. It recorded more than twice the number of transactions as the second-most active nation, France.

Europe's long-held position as the most active region in cross-border M&A activity continued in Q3 12.

But aggregating the results by region and focusing on cross-border deals only, Europe comes out ahead by a considerable margin, a position it has enjoyed in all but one quarter of the survey period. Europe accounted for 45% of deal volume by buyer region and 46% by seller region.

The US, however, is the most active individual country when both cross-border and in-border deals are considered. In Q3 12, the US announced 50 deals in total, which accounts for 16% of total deal volume.

The next most active country was France with a total of 22 deals or 7% of total volume. The US was also active at the top end of the deal size spectrum, appearing as the buyer country in 4 of the top 10 deals and as a seller in 5.

The disclosed value of cross-border deals decreased from US$43.8b in Q2 12 to US$19.1b in Q3 12. The focus of many consumer products groups on the Asia-Pacific region was evident in the value of cross-border deals.

As the buyer region, Asia-Pacific’s contribution increased from 9% in Q2 12 to 48% in Q3 12, and in absolute terms deal value increased significantly from US$3.8b in Q2 12 to US$9.2b in Q3 12.

As the seller region, Asia-Pacific represented 73% of cross-border value in Q3 12, up from 1% in Q2 12, while deal value increased from US$327m in Q2 12 to US$13.6b in Q3 12.

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Regional volume comparisons(buy/sell combined) Q4 09 to Q3 12

Regional volume comparisons(buy/sell combined) Q4 09 to Q3 12 ×

Source: EY's analysis of Thomson Reuters data.

Regional value comparisons (buy/sell combined) Q4 09 to Q3 12 (US$b)

Number and value of beverage deals Q4 09 to Q3 12 ×

Source: EY’s analysis of Thomson Reuters data.