Report finds auto industry M&A volume picks up; total value down
By APThursday, August 26, 2010
Report: Auto industry M&A market slowly picks up
DETROIT — PriceWaterhouseCoopers said in a report that the volume of global auto industry merger and acquisitions rose during the first half of 2010, though the total value of those deals was the lowest in five years.
The report found that 265 deals closed in the first six months of 2010, with a total disclosed value of $11.6 billion. PriceWaterhouseCoopers described the volume as a “cautious uptick.”
The consulting group said that most of 2009 was characterized by companies restructuring, divesting and seeking capital infusions as the auto industry suffered through a steep sales decline.
The total disclosed value in the first half of 2009, $31.6 billion, was larger than the first half of 2010. But much of that was made up of $21.8 billion from two big deals and the U.S. government’s huge loans to Chrysler and General Motors to keep them afloat.
PriceWaterhouseCoopers said that the first half of 2010 was marked by smaller, more strategic transactions. Asia accounted for the largest share of global value, while Europe made up half of the M&A volume.
