Source: GlobalData
Supply chain drives M&A deal activity to record 5% YoY value growth in 2024, reveals GlobalData
Posted in Strategic Intelligence
Helped by a steady fall in interest rates and modest economic growth, global mergers and acquisition (M&A) deal activity surged during 2024, with a 5% increase in total deal value year-over-year (YoY). Supply chain resilience was a key theme that drove this momentum, with $160 billion in supply chain-related transactions across 22 deals, covering sectors like healthcare and industrials, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “Global M&A Deals in 2024 – Top Themes by Sector – Strategic Intelligence,” reveals that in terms of deal volume, there was a 0.3% decrease from 2023 to record 31,952 deals in 2024.
Priya Toppo, Analyst, Strategic Intelligence at GlobalData, comments: “Rising geopolitical tensions, shifting demographics, heightened ESG regulations, ongoing labor shortages, and accelerated digital transformation have further intensified the focus on supply chain-related M&A deals. Companies are increasingly prioritizing resilient, localized, and technology-driven supply chains to mitigate risks and enhance operational efficiency. This was especially true in the healthcare, industrials, energy, and real estate sectors.”
The biggest supply chain deal was Novo Holdings’ acquisition of Catalent for $17 billion. This deal was also the biggest in the industrials sector in 2024. It was followed by China First Heavy Industries’ merger with China Shipbuilding for $16 billion and Johnson & Johnson’s acquisition of Shockwave Medical for $13 billion.
Toppo continues: “An ongoing trend is the dominance of North America in M&A deal activity, accounting for 12,571 deals worth $1.3 trillion during 2024. However, China, South America, and the Middle East and Africa saw a YoY decline in deal value.”
Toppo concludes: “The M&A outlook for 2025 is cautiously optimistic, as potential rate cuts in certain markets and an improving global economic environment could drive deal activity. However, mega-deals may continue to face challenges, particularly in the US, where antitrust scrutiny remains a key focus for regulators.”