(20 December 2010 – Australia) Merger and acquisition activity has doubled since last year due to an influx of deals in the last three months.The global financial crisis left investment banks scavenging for work as boards opted to wait for indications of market security before embarking on the next big deal.
However, a significant increase in deals in the last quarter has seen M&A activity involving Australian corporates in 2010 rise 121 percent to US$151.9 billion from US$69 billion in 2009, according to Thomson Reuters data, which was exclusive to The Australian newspaper.
‘We’re certainly not back to the levels we’ve seen historically and I think it will take a long time before we ever see that again, but you’re certainly seeing the recovery,’ UBS co-head of M&A Kelvin Barry told The Australian newspaper.
Several bankers characterised 2010 as ‘a year of two halves’, with a solemn start followed by a strong second half because of improved board confidence and improving credit markets.
But other drivers included the continued strong activity in resources, the return of private equity and healthy offshore interest in Australia, despite the strong Australian dollar.