Equity and M&A deals plummet in tough Q3
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U.S. and global dealmaking slowed significantly in the third quarter, with equity and merger and acquisition announcements "plummeting" year over year and quarter over quarter, according to the latest data from S&P Global Market Intelligence.
By the numbers: The global total value raised from equity deals fell 37.1% quarter over quarter and 29.4% year over year to $91.85 billion.
- In the U.S., deal value fell by 35% from the second quarter and 11% from Q3 2018.
- The total sum of $10 billion-plus global M&A transactions fell 78.8% and the sum of $1 billion-plus global IPOs fell 62.5%.
Be smart: Q3's weakness happened in the context of heightened global uncertainty and a number of geopolitical events that shook confidence, including the Saudi Arabia oil field strike, Brexit negotiations and a surprise election result in Argentina, S&P analysts note in the report.
The bottom line: "The trade war has been taking a toll on economic growth. Countries such as Germany with the greatest exposure to manufacturing and trade have seen the most weakness. Consumers have remained resilient, which bodes well for consumption-driven economies such as the U.S., but the tariffs keep coming."
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