Global cross-border mergers and acquisitions (M&A) activity continued to be stifled by uncertainty around events such as Brexit and the US presidential election in the last quarter, a new report has found.
Law firm Baker & McKenzie tracked 1,275 cross-border deals worth $373bn (£305bn), down 22 per cent in volume of deals and five per cent in value, in the third quarter of 2016.
The firm’s Cross-Border M&A Index score came in at 238, which was up 23 per cent on the previous quarter, but down 10 per cent year-on-year.
The report said the quarter-on-quarter increase was driven by “renewed confidence at the upper end of the market with several blockbuster deals being announced”.
Read more: Megadeath to megadeals
"The dip in deal volume this quarter was not a surprise for many as mid-market M&A volumes traditionally dip around US elections and we continue to experience political and macroeconomic uncertainty globally," said Michael DeFranco, chair of Baker & McKenzie's global M&A practice.
"On the flip side, while still down from a year ago, we are beginning to see a re-emergence of the megadeal."