Dear Sir/Madam,
It is my pleasure to share with you the latest issue of UNCTAD's
Global Investment Trend Monitor
which focuses on recent trends in cross-border merger and acquisitions.
The key message: Recovery in cross-border mergers and acquisitions
- Cross-border merger and acquisition
(M&A) activity increased significantly in the first half of 2015, but
may be slowing down in the second half of the year. The value of cross-border
M&A purchases, which is an indicator of outward FDI flows, rose
to US$441 billion, a 136% increase over the same period of 2014.
- Multinational enterprises (MNEs)
from developed countries were the principal drivers of the global cross-border
M&A trend. European MNEs, after a number of years of high divestment
levels, registered a sharp rise in the value of acquisitions in 2015.
- Cross-border M&As carried out
by MNEs from North America continued to grow strongly (up more than 100%).
Acquisitions by Canadian MNEs reached their highest half-year level. Tax
inversions accounted for half of outbound deals by value from the United
States, although they represented a small share (10%) of global cross-border
M&A purchases.
- After emerging as the largest investing
region in the world for the first time in 2014, cross-border M&As by
firms from developing Asia registered a decline this year (-27%). Activity
by MNEs from Latin America and the Caribbean, as well as from Africa also
decreased, reflecting the consequences of depreciating domestic currencies
and falling commodity prices.
- The growth of cross-border M&A
purchases is projected to slow in the second half of 2015, but the full
year value will be well above that of 2014, based on the first ten months
of the year. While economic, financial, and structural trends support this
forecast, potential downside factors could limit the scale and length of
this current wave of cross-border M&As going forward.
For the latest issue of the Global Investment Trends Monitor and the UNCTAD
Investment Policy Monitor, please click
here.
For the latest World Investment Report, please click
here.
Best regards,
James Zhan
Director, Investment and Enterprise
Team leader, World Investment
Report
UNCTAD
Palais des Nations, Geneva
Tel:+41229175797
www.unctad.org/diae
www.unctad.org/wir
(World Investment Reports)
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