Consumer products deals activity overview
Total deal volumes rose very slightly in Q3 12, the first increase in four quarters.
Two megadeals were announced in the quarter, both in the beverage sector, but overall deal value declined compared with Q2. Although consumer products companies are less optimistic about the economic outlook, they still retain their appetite for M&A.
Although consumer products companies are less optimistic about the economic outlook, they still retain their appetite for M&A.
Take a closer look at this quarter’s consumer products deals:
- Volume steady, but total value declines
- Big-ticket beverage deals leading the way
- Megadeals underpin increase in beverage deal activity
- Europe leads in cross-border deals, but US most active overall
Deal highlights include:
- Deal volumes rise slightly after four consecutive quarterly declines. Third-quarter deal volumes were broadly flat, increasing very slightly to 310 deals from 303 in Q2 12. The four-period long-term moving average of total deal volume continued to decline, dropping from 351 deals to 323 deals.
- Total value drops sharply. Disclosed deal value more than halved, dropping from US$51.2b in Q2 12 to US$24.4b in Q3 12. There were two megadeals with a value greater than US$5b in the quarter and five deals with a value of more than US$1b.
- Corporate deal activity ticks slightly higher, private equity stable. Corporate deals, representing 83% of total deals in Q3 12, increased to 260 deals from 252 deals in Q2 12. However, private equity deals decreased to 50 deals from 51 deals in Q2 12.
- Cross-border activity stable. There were 110 cross-border deals in Q3 12, the same number as in Q2 12. Europe dominated the cross-border deals in terms of volume in Q3 12, both as buyer and seller. But when in-border activity is included, the US was the most active country.