Global transportation and logistics M&A analysis: Q3 2009

Climate change: Shifting the business environment beyond corporate responsibility

Intersections is a quarterly analysis of global merger and acquisition activity in the transportation and logistics industry. Each edition includes a review of overall deal activity for the quarter and year to date and a summary of large deals. Also included is a spotlight on a PwC service and a case study.

Global transportation and logistics M&A analysis: Q3 2009

This quarter, the Intersections report takes a deeper look at the impact prospective energy and climate policies may have on business transactions. Our special report highlights the role of cap-and-trade on climate change legislation, the deal market's response, company brand and reputation considerations, and the interests of the growing number of environmentally aware stakeholders.

PwC's third-quarter mergers and acquisition analysis indicates that deal volume and deal value in the transportation and logistics sector are on an upward trajectory, compared to the first half of the year. Twenty deals with a total value of $6.2 billion were announced during the third quarter in the sector, compared with 31 deals announced with a value of $5.4 billion in the first half of 2009. The improvement in the pace of deal announcements can be attributed to passenger air deals, several of which involved entities in the Asia & Oceania region, as well as smaller deals involving US entities.

Financial investors also began to reassert themselves on a limited basis, helped by tenuous improvements in the credit markets. In addition, this quarter saw the announcement of two large deals topping $1 billion, the first deals of this size since 2008.