The Deloitte M&A Index first half 2015

Key messages

• We predict that deal volumes for H1 2015 will be 8% higher than for the same period in 2014.

• M&A volumes are being influenced by factors such as the decline in oil prices, appreciation of the dollar, the rise of China as a global player in M&A and pressure from investors to focus on top-line growth.

• Diverging growth trajectories between the US and other economies are opening up deal corridors for US corporates to acquire attractively priced assets abroad.

• We estimate nearly one in four dollars spent on deals in Europe last year was from either the US or Asian countries.

Key trends in Financial Services

• M&A made a strong comeback in Financial Services sector in 2014, we estimate $315.7 billion were announced, the highest since 2008. The momentum is continuing into 2015 and so far this year $48.5 billion deals have been announced.

• Globally many banks have rebuilt their balance sheets and now seek growth prospects and expansion into new markets through acquisitions. This is driving recent deals, including the acquisition of City National Corporation, a Los Angeles-based wealth management firm, by Royal Bank of Canada for $5.4 billion and Mizuho Financial Group’s acquisition of the North American credit portfolio of RBS for $3 billion.

• The largest deal so far in 2015 was the $11 billion merger between Partner Re and Axis Capital to create the world’s fifth largest property and casualty reinsurer.

Previous editions

Q4 2014 M&A Index - Mega-deals lead the resurgence in M&A markets

Q3 2014 M&A Index - Rising 'animal spirits' continue to stoke M&A activity

Q2 2014 M&A Index - Growth is back on the corporate agenda

H2 2013 M&A Index – Recovery of deal volumes expected in H2 as sentiment improves

Q2 2013 M&A Index - Strong US recovery to push M&A volumes higher