Frank Reporter
Global mergers and acquisitions activity remained weak in the second quarter of 2024, S&P Global Market Intelligence said in a recent report. This comes as the Federal Reserve has kept interest rates high in its bid to reduce inflation, making financing deals more expensive.
The number of announced M&A deals worldwide has remained below 10,000 for three of the past four quarters. About 9,719 deals were announced, up from 9,696 in the first quarter but down from 10,784 in the second quarter of 2023. The deal value of $600.1 billion was down from $621.1 billion in the previous quarter and up from $593.1 billion in the year-ago period.
In the first half of the year, the total value of global M&A deals rose 12% to $1.22 trillion compared to last year.
“The total quarterly value is still well below 2021 levels, when the total crossed the $1 trillion mark every quarter, but the year-over-year rise in 2024 shows that dealmakers are more willing to execute large transactions,” the report said. He said.
The volume of dealmaking activity is critical to investment banks, which earn fees for advising companies on sales and acquisitions, and underwriting equity and debt financing.
During the first half of 2024, JPMorgan Chase will be able toNew York: JPM) generated the most global M&A revenue of any bank at $1.41 billion, representing a 9.9% market share, according to Dealogic. It is followed by Goldman Sachs (NYSE:GS) with a value of $1.40 billion and a market share of 9.8%, and Morgan Stanley (New York: MS) for $960 million, or 6.7% of the stake.
By transaction value, Goldman Sachs advised on the largest share of global deals, 201 deals worth $498.8 billion, in the first half of 2024. JPMorgan came in next, advising on 188 deals worth $411.6 billion. Morgan Stanley advised on 171 deals worth $396.9 billion.
M&A activity in Europe helped boost the global outlook. S&P Global said the total value of M&A announcements in Europe in the second quarter jumped 65% quarter-on-quarter and 25% year-on-year to $182.9 billion, the highest level since the second quarter of 2022.
Their rankings in US M&A deals mirrored their positions in global activity. In revenue, JPMorgan (JPM), Goldman Sachs (GS) and Morgan Stanley (MS) topped the league tables, while Goldman was first in terms of M&A deal value, followed by JPMorgan and Morgan Stanley.
In global investment banking revenues, JPMorgan Chase took the top spot with revenues of $3.95 billion in the first half of the year, representing a market share of 9.5%, followed by Goldman Sachs (GS), with revenues of $3.01 billion and a market share of 7.2%.NYSE:BAC) came in third with revenues of $2.65 billion, or a market share of 6.4%.
In U.S. investment banking, the rankings were similar, with JPMorgan Chase generating $2.61 billion in revenue, Goldman Sachs $1.90 billion and Bank of America $1.70 billion, according to Dealogic.