GlobalData’s latest report, Quarterly Equipment and Services Deals Review – Q3 2018, shows that a combined value of $9.9bn in mergers and acquisitions (M&A) were announced in the equipment and services sector in Q3 2018. This was an enormous increase from the $4.1bn in M&A deals announced in the previous quarter. A year-on-year comparison shows a decrease of 32% in deal value in Q3 2018, when compared to Q3 2017’s value of $14.6bn. During the quarter, there were 12 M&A deals with values greater than $100m, together accounting for $9.5bn.
Linde’s agreement to sell the majority of its gases business in North America and certain business activities in South America, for a sale consideration of $3.3bn, was the top deal registered in Q3 2018. The business to be sold includes all of Linde’s US bulk business, and its business in Brazil, Canada and Colombia. Latham & Watkins (London ) LLP and Freshfields Bruckhaus Deringer LLP are acting as legal advisors to CVC and Messer in the transaction. Goldman Sachs and Deutsche Bank acted as financial advisors to Linde in the transaction. The transaction will enable Messer Group to strengthen its position in the North and South American industrial gases markets.
Equipment and services M&A deal value and count, Q3 2018
Source: Deals Analytics, GlobalData Oil and Gas © GlobalData
On the volume front, the number of M&A deals decreased by 12% from 86 in Q2 2018 to 76 in Q3 2018, of which 17 were cross border transactions and the remaining 59 were domestic transactions. EMEA was the destination of choice for cross-border M&A activity in Q3 2018, recording 11 cross-border transactions in the quarter.
Regionally, Americas led the global M&A market in terms of volume, with 47 deals, representing 62% of global deals, in Q3 2018. The EMEA region led the M&A market in terms of value, with a 53% share totalling $5.2bn from 24 deals, in Q3 2018. Asia-Pacific region accounted for six global deals, or 8% in Q3 2018, of which one was a cross-border acquisition and the remaining five were domestic acquisitions.