Why it has been a mega quarter for mega deals

William Turvill
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So far in the second quarter of 2016, 10 mega deals have completed, up from five in the same period last year (Source: Getty)

The second quarter of 2016 has been a mega period for mega deals.

The three-month period has so far included 10 $10bn-plus (£6.8bn-plus) deals completing, according to Willis Towers Watson’s Quarterly Deal Performance Monitor.

There were half as many mega mergers and acquisitions (M&A) transactions completed in the same quarter in 2015. Each of the 10 deals were first revealed in 2015, which was a record year for M&A deal announcements.

Read more: The UK's share of the global M&A market is at a record low ahead of EU vote

But the research, run in partnership with Cass Business School, found drops in the number of smaller deals across North America, 88 down from 119 in the same period of 2015; Europe, 34 from 43; and Asia, 58 from 79. Only deals worth $100m or more were included in the research.

“There is no doubt we have seen a marked slowdown in deal volumes compared to the record deal numbers of completed M&As at the end of last year,” said Steve Allan, M&A practice leader across EMEA at Willis Towers Watson.

“However the high number of mega deals recorded this quarter reflects the continued confidence of the largest serial acquirers, as well as the typically longer lead times for the largest deals.”

Read more: Goldman Sachs is feeling pretty confident about M&A this year

He said North America’s decline “could signify the end of the M&A surge, however it could also be a sign of the uncertainty that the current US presidential election campaign is creating”.

Here are the 10 mega deals that have completed in the second quarter of 2016:

Date announced Date effective Acquirer Target Value of transaction ($ mil)
26/05/2015 18/05/2016 Charter Communications Inc Time Warner Cable Inc $55.6bn
04/08/2015 03/06/2016 Shire PLC Baxalta Inc $31bn
21/10/2015 12/05/2016 Western Digital Corp SanDisk Corp $16.1bn
14/12/2015 15/04/2016 Newell Rubbermaid Inc Jarden Corp $15.4bn
07/11/2015 02/04/2016 China Yangtze Power Co Ltd Sanxia Jinsha River Chuanyun $14bn
26/08/2015 01/04/2016 Schlumberger Ltd Cameron International Corp $12.8bn
06/08/2015 28/05/2016 Coca-Cola European Partners Coca-Cola Enterprises Inc $11.9bn
31/03/2015 18/05/2016 Charter Communications Inc Bright House Networks LLC $10.8bn
17/11/2015 23/05/2016 Air Liquide SA Airgas Inc $10.6bn
05/02/2015 01/04/2016 Frontier Communications Corp Verizon Commun Inc-Wireline $10.5bn

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