Global mergers and acquisitions (M&A) activity has kept pace in the second quarter, with positive momentum set in the first three months of the year, according to a quarterly report from Willows Towers Watson .

Data from the Quarterly Deal Performance Monitor revealed that 166 deals valued over $100 million were completed globally during the second quarter of 2024, matching the number of deals closed in the previous quarter.

The second-quarter figure surpassed the 130 deals closed during the same period in 2023, reflecting a 28% increase in volume, according to the data, which was gathered in partnership with the M&A Research Centre at Bayes Business School.

There were 35 deals valued over $1 billion completed in this year’s second quarter, up from 34 such transactions conducted in the prior quarter and 32 executed in the last three months of 2023.

Four mega deals valued over $10bn were done in the second quarter of 2024, while a total of nine mega deals have been closed so far this year, compared to just three during the first six months of 2023, according to the report.

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Acquisitions completed within the same industry sector, or intra-sector deals, have been rising as a proportion of overall M&A, compared to cross-sector acquisitions. Since the start of 2023 intra-sector acquisitions have increased from 57% of the total in Q1 2023 to 74% in the latest quarter, WTW said.

"If the first half of 2024 is any indication, dealmaking may be on the verge of returning to pre-Covid levels and deal behavior," David Dean, managing director of mergers and acquisitions at WTW, said in a statement.

"The combination of rising market confidence, anticipated interest rate cuts, improved financing conditions, low volatility and narrowing valuation gaps will help shake off the dealmaking doldrums we've seen since late 2022."

Recent noteworthy M&A deals include The Boeing Company’s acquisition of Spirit Aerosystems for $4.7 billion in June. Some other major deals for June include KKR & Co. Inc. ( KKR ) buying Varsity Brands for $4.8 billion and BlackRock, Inc. ( BLK ) acquiring Preqin for $3.2 billion, according to Intellizence.

Home Depot, Inc. ( HD ) acquired SRS Distribution Inc. in March for $18.25 billion.

The M&A market in North America “remains challenging,” WTW said. Acquirers underperformed their regional index by 7.7%. This marks the sixth consecutive quarter that buyers have been outclassed by industry peers. There were 90 deals completed in North America, down from 97 done in the previous quarter.

There were 34 deals closed in Europe during the second quarter. That’s down from 37 transactions completed in the previous quarter, according to WTW. The Asia Pacific market saw 38 deals finalized in the second quarter. That’s up from 31 transactions completed in the first three months of 2023.

China accounted for three deals in the second quarter and a total of 12 deals for the first half of 2024 to post the country’s lowest level of M&A activity for the first six months of a year since 2010, WTW said.

"While deal volume is up this year, lingering inflation, high interest rates and uncertainty surrounding the upcoming presidential election still pose risks for future M&A activity,” Dean said.

“If a M&A rebound is to take shape, we believe dealmakers will need to lower their risk exposure by exercising a high-degree of caution, focus on ‘best-fit' deals and thorough due diligence that allows for extended timelines, coupled with an effective integration plan that maximizes M&A value.”

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