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.

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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: fdiintelligence@ft.com 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: