June Merger Activity Slower Than In 2016, Spending Up

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June Merger Activity Slower Than In 2016, Spending Up

U.S. M&A deal activity decreased in June, down 7.4% with 894 announcements compared to 965 in May. At the same time, aggregate M&A spending increased; in June, 22.0% more was spent on deals compared to May.

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Over the past three months, these sectors that have seen the biggest increases in M&A deal activity, relative to the same three-month period one year ago: Distribution Services (159 vs. 152), Transportation (64 vs. 58), Miscellaneous (16 vs. 13), and Government (10 vs. nine). Four of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months, compared to the same three months one year prior.

 Sector By Activity
Target Sector L3M 6/30/17 Deal Count L3M 6/30/16 Deal Count Difference
Distribution Services 159 152 7
Transportation 64 58 6
Miscellaneous 16 13 3
Government  10 9 1
Finance 367 367 0
Energy Minerals 40 41 (1)
Utilities  69 72 (3)
Non-Energy Minerals 58 62 (1)
Consumer Services 214 219 (5)
Retail Trade 99 104 (5)
Electronic Technology 82 89 (7)
Consumer Durables 46 61 (15)
Consumer Non-Durables 67 83 (16)
Communications 29 52 (23)
Health Technology 93 117 (24)
Industrial Services 123 149 (26)
Process industries 106 133 (27)
Producer Manufacturing 160 193 (33)
Technology Services 427 468 (41)
Health Services 122 164 (42)
Commercial Services 376 468 (92)
Total 2,772 3,074 (347)

Over the past three months, these sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago: Commercial Services (376 vs. 468), Health Services (122 vs. 164), Technology Services (427 vs. 468), Producer Manufacturing (160 vs. 193), and Process Industries (106 vs. 133). Sixteen of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over the last three months compared to the same three months one year prior, for a combined loss of 364 deals.

Topping the list of the largest deals announced in June were:

  • Amazon.com, Inc. agreeing to acquire Whole Foods Market, Inc. for $13.4 billion
  • Sycamore Partners Management LP's agreement to acquire Staples, Inc. for $6.7 billion
  • EQT Corp. entering an agreement to acquire Rice Energy, Inc. for $5.6 billion
  • Walgreens Boots Alliance, Inc. agreeing to acquire 2,186 stores and three distribution centers from Rite Aid Corp. for $5.2 billion
  • Digital Realty Trust, Inc.'s deal to acquire DuPont Fabros Technology, Inc. for $5 billion

FactSet Flashwire Monthly Report

Download the full report for more including:

  • Key trend information for the Overall and Middle M&A Markets, such as deal volume, deal value, mega-deals, leading buyers, leading industries, leading sectors, cross-border deals, US regional deals, average P/E, average premiums, payment methods, and much more
  • Industry reports on the Internet, Telecommunications, Healthcare, Banking, and much more
  • Special reports on technology, the public and private M&A markets, cancellation fees, industry activity, etc.
  • Leading financial and legal advisor rankings

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