North America M&A Activity Analysis-Q4 2019

The North America region witnessed a slump in mergers and acquisition (M&A) deal volume in the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.

M&A activity within the North America region witnessed a down trend, with the region experiencing a decrease from 3,149 M&A deals in Q4 2018 to 2,851 M&A deals in Q4 2019. The region also witnessed a decline in M&A deal value in Q4 2019 compared to Q4 2018. The decline in deal volume and value could be attributed to weak activity in the US.

Notable M&A deals announced during Q4 2019 in North America included; the merger of International Flavors & Fragrances with DuPont Nutrition & Biosciences for US$26.2bn, the acquisition of TD Ameritrade by Charles Schwab for US$4bn, and the acquisition of Tiffany by LVMH Moet Hennessy Louis Vuitton for US$16.2bn, among others.

The US topped the North American region in M&A deal activity with 2,479 deals accounting for 87% of the total deals announced during Q4 2019. However, it witnessed a decline in deal volume and value during Q4 2019 compared to Q4 2018.

In contrast, Canada reported growth in deal value in Q4 2019 despite registering a decline in M&A deal volume from 466 deals in Q4 2018 to 372 deals in Q4 2019.

The oil & gas sector accounted for 24% of the top 50 deals in North America during Q4 2019 followed by the technology sector, which accounted for a 20% share and was distantly followed by the food and power sectors, with each accounting for an 8% share of these deals.

Some of the top deals in the oil & gas sector during Q4 2019 included the acquisition of 78.3% stake in EnLink Midstream Partners by EnLink Midstream for US$8.6bn and the acquisition of Newfield Exploration by Encana for US$7.7bn.