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Worldwide Announced M&A Off To Its Best Start Since 2000

Bolstered by big deals in health care, luxury goods, and energy, 2017 is off to an exceptionally strong start for mergers and acquisitions. According to S&P Global Market Intelligence information, the announced deal value for worldwide M&A transactions occurring in January 2017 totaled $270.5 billion from almost 4,700 individual deals, a 30% increase from January 2016’s M&A deal value of $207.1 billion. This marks the best start to a new year for deal making since 2000 when $426.8 billion in M&A occurred, led by America Online Inc.’s $164 billion purchase of Time Warner, Inc.

The top M&A deal of early 2017 is pharmaceutical firm Johnson & Johnson’s  (NYSE:JNJ) definitive transaction agreement to acquire Swiss biotech firm Actelion Ltd (SWX:ATLN) for $29 billion on January 26, 2017. The deal ranks as Johnson & Johnson’s largest-ever acquisition and the third-largest ever U.S. acquisition of a foreign company. That was followed by French lens maker Essilor International SA (ENXTPA:EI) entering into an agreement to acquire a 61.9% stake in Italian eyeglass designer Luxottica Group S.p.A. for $16 billion on January 15, 2017. Another big deal in the health care sector was Mars, Incorporated entering into an agreement to acquire VCA Inc. (NasdaqGS:WOOF) for $9.1 billion on January 7, 2017. The top energy sector M&A deal announced in January was DCP Midstream Operating, LP agreeing to acquire substantially all remaining assets of DCP Midstream LLC in a transaction, including assumed liabilities, valued at $8.86 billion.

Among specific sectors, healthcare ranked first in terms of deal proceeds during January 2017, with almost $58 billion in transactions, followed by real estate with $43.9 billion, and energy with $37.9 billion.  The lagging sectors for worldwide M&A last month were telecommunication services with $544 million in deals, followed by materials with $8.36 billion. In terms of individual deal count, the real estate sector topped the list with 1,058 transactions, or about 23%, of the 4,699 occurring last month. That was followed by industrials with 657 deals, and consumer discretionary with 622 transactions.

Worldwide announced m&a transactions

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