M&A Activity Rises Sharply in 2010

Thompson Reuters:  Announced M&A grew nearly 20% this year, to $2.25 trillion globally. The preliminary figures show emerging markets made up a record 17 percent of transactions, and energy was the busiest sector.  This was the first annual increase in M&A since 2007.Next year could be busier still.

Emerging markets deals hit a record $378 billion, while developed markets lagged. Global M&A increased 19 percent, while U.S. M&A rose 11 percent and activity in Europe climbed 5 percent.  Energy and power was the year’s busiest sector, with a near-40 percent rise in announced deals to $482 billion, followed by the financial and basic materials sectors.

“Asian players, led by China, are making a land-grab for resources to fuel their economies for many years into the future,” said Jeremy Wilson, co-head of natural resources at JPMorgan.  Read more….. 

Hat tip to Sanjeev Kulkarni.

GEI Editor’s note:  EconIntersect’s opinion is that at least part of this activity can be attributed to U.S. QE.  Instead os stimulating economci activity at home, it is leaking into the rest of the world and fueling both real growth and speculation.