Consumer products deals activity overview

Volume steady, but total value declines

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For the second consecutive quarter, overall deal volumes were broadly stable. Total deal values, however, declined from the Q2 12 peak because of a lower value for the top 10 deals.

Overall deal volumes were broadly stable, but total deal values declined from the Q2 12 peak.

Two megadeals were announced during the quarter and five of the top 10 deals had a value of more than US$1b.

Deal volumes increased by 2% in Q3 12 to 310 deals from 303 in Q2 12, the first increase in four quarters. Because of the marked drop in deal activity between Q4 11 and Q1 12, the four-period long-term moving (LTM) average of deal volume continued to move lower in the third quarter, dropping to 323 deals from 351 in Q2 12.

The slight increase in deal volumes was attributable to corporate deals. The level of private equity activity was broadly stable, declining by just 1 deal to 50 deals in Q3 12.

Total disclosed deal value decreased in the third quarter, from US$51.2b in Q2 12 to US$24.4b in Q3 12.

The sharp drop quarter-on-quarter reflects the fact that Q2 12 value was boosted by AB InBev’s US$20b purchase of Modelo rather than Q3 12 being particularly weak. For the same reason, average deal value also halved, decreasing to US$230m in Q3 12 from US$466m in Q2 12.



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Deal volumes Q4 09 to Q3 12

Deal volumes Q4 09 to Q3 12 ×

Source: EY’s analysis of Thomson Reuters data.

Deal values Q4 09 to Q3 12

Deal volumes Q4 09 to Q3 12 ×

Source: EY’s analysis of Thomson Reuters data.