In the merger and acquisition (M&A) market, the impact of the credit crunch has already been clearly felt.
According to Mergermarket, the US M&A market saw its slowest quarter since Q3 2003 and the financial services sector, which had consistently been the hottest single sector for M&A in recent years, made up just 12% of all M&A activity by value in Q1 2008.
The M&A market has become underpinned by commodities, which comprised 40% of announced deals in Q1.
The greenfield FDI market has proved more resilient. As the graph below shows, the number of FDI projects has grown in each of the last four quarters and both the number and value of projects was higher Q1 2008 than in Q1 2007.
Discuss the impact of the credit crunch on globalisation in a webinar hosted by fDi Intelligence on July 22. To register contact: firstname.lastname@example.org by July 11
GLOBAL FOREIGN DIRECT INVESTMENT ACTIVITY – QUARTERLY TRENDS
MARKET SHARE OF FDI PROJECTS ATTRACTED BY WORLD REGION – TOTAL PROJECTS 13,306
MARKET SHARE OF FDI PROJECTS BY INDUSTRY – TOTAL PROJECTS 13,306
MARKET SHARE OF FDI PROJECTS
IN FINANCIAL SERVICES ATTRACTED BY WORLD REGION – TOTAL PROJECTS
MARKET SHARE OF FDI CAPITAL ATTRACTED BY WORLD REGION ($BN) – TOTAL $1190 BILLION: