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Equity and M&A deals plummet in tough Q3

Adapted from S&P Global; Chart: Axios Visuals

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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