Saturday, August 09, 2008
Automotive mergers and acquisitions remain robust
PwC study finds M&A activity is defying economic downturn
The number of automotive mergers and acquisitions during the first half of 2008 has been better-than-expected, according to PricewaterhouseCoopers.
The financial services firm has said the market appears to be on course to exceed 500 deals by the end of 2008.
So far this year automotive M&A activity has been driven by trade buyers, whereas financial buyers have remained secondary, PricewaterhouseCoopers found.
It said financial buyer activity decreased substantially in both deal volume and disclosed value.
Jason Wakelam, partner in transaction services PricewaterhouseCoopers LLP, said: “Overall deal volume has seen a moderate decline this year compared to 2007 and 2006, reflecting the knock on impact of the credit crunch.
“We are observing the early stages of an increasing trend of emerging market players acquiring major companies in established markets in order to achieve access to global customers, markets and technology – Tata Motors' acquisition of Jaguar and Land Rover being the most high profile examples in the UK to date.”
DATED: 09.08.08
FEED: MT
The number of automotive mergers and acquisitions during the first half of 2008 has been better-than-expected, according to PricewaterhouseCoopers.
The financial services firm has said the market appears to be on course to exceed 500 deals by the end of 2008.
So far this year automotive M&A activity has been driven by trade buyers, whereas financial buyers have remained secondary, PricewaterhouseCoopers found.
It said financial buyer activity decreased substantially in both deal volume and disclosed value.
Jason Wakelam, partner in transaction services PricewaterhouseCoopers LLP, said: “Overall deal volume has seen a moderate decline this year compared to 2007 and 2006, reflecting the knock on impact of the credit crunch.
“We are observing the early stages of an increasing trend of emerging market players acquiring major companies in established markets in order to achieve access to global customers, markets and technology – Tata Motors' acquisition of Jaguar and Land Rover being the most high profile examples in the UK to date.”
DATED: 09.08.08
FEED: MT
