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Value of global M&A rises by 30pc

The value of global engineering and construction mergers and acquisitions rose 30 per cent in the third quarter of 2011 compared with the same period last year, according to accountancy giant PwC.

PwC’s engineering growth report shows there were 44 announced global deals worth $50 million (£31.2m) or more, totalling $18.5 billion (£11.6bn), compared to 38 transactions with $14.3bn (£8.9bn) in the same period in 2010.

Overall, 21 per cent of the deals were in construction. Targets and acquirers in the Asia and Oceania region included 24 transactions worth $8.1 billion (£5.1bn).

Activity in the UK and Eurozone rose 18 per cent “despite economic concerns, budgetary issues and volatile financial markets”.

Chris Temple, partner with the PwC strategy team, said:  “Whilst we are seeing incremental growth in construction M&A in North America, the UK and the Eurozone, there is still caution in the UK industry.

“Corporates continue to follow previously stated strategies although many of the deals are small in nature.  

“Private equity continues to monitor the sector with keen interest; they are seeking growth opportunities particularly focused on the green agenda, regulation and renewables and continue to be cautious on baseline current trading.”

Five mega deals, or transactions worth more than $1bn (£625m), accounted for more than $10.3bn (£6.44bn) and 55 percent of overall third quarter M&A value.   
The average deal value remained unchanged at $400m (£249.9m).

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