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Global M&A activity holds steady

Global mergers and acquisitions in the construction and engineering industries remained steady in the second quarter of 2011, according to latest research.

The report from auditors PricewaterhouseCoopers said targets and acquirers in Asia and Oceania still generated the most deal activity, despite a downward trend. Meanwhile in the UK, Eurozone and North America, activity picked up, exceeding 2010 levels and suggesting that despite the global economic climate, companies within these developed markets continued to seek M&A as a source for growth.

Overall, for announced deals worth $50 million (£30.8m) or more, there were 41 transactions totaling $11.6 billion (£7.15bn) in the second quarter of 2011, compared to 44 deals totaling $11.4bn (£7.03bn)in the same period of 2010.

For the first half of 2011, deal volume increased to 82 deals for a total value of $32.5 billion, compared to 79 deals with a value of $37 billion in the first half of 2010. PwC puts the descrease in value down to increased volatility in the equity markets, downward revisions of US and global GDP growth, persistent debt problems in Europe, and inflation and overheating concerns in emerging markets.

The report added that as regional economies continue to recover, the volume and value of future deals in North America and the UK and Eurozone regions should increase incrementally, and outbound deals are also likely to pick up as companies seek greater growth opportunities in emerging markets.

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