M&A Activities Wither Amid Huge State Bailouts
Saturday, June 27, 2009 10:16
After a strong first quarter of a year that has been dominated by government bailouts, figures show that activity in mergers and acquisitions has all but dried up in the past three months.
The data highlight the central role that the bailout have played in underpinning investment bank revenues during the recession. To date, M&A has accounted for only £5.5 billion in the second quarter of the year, which means that this quarter is likely to be the weakest for such activity for 15 years.
Activity is down from the £50.8 billion recorded in first-quarter figure was dominated by the £47 billion rescues of Lloyds and RBS by the Treasury, which made up more than 90% of activity. five of the largest ten deals were bailouts.
According to data compiled for The Times by Thomson Reuters, it is found that only £9.9 billion of private sector M&A deals have been signed off so far this year.
It is not a full recovery yet, but at least there are some deals.
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