For the first time since 2011, automotive supplier Mergers & Acquisition (M&A) activity is expected to increase; based on data for the first six-months of 2014. PwC estimates about 211 deals for the year, which will be a 13% increase over 2013.
“Consolidation in the Global Automotive Supply industry”, in its seventh consecutive year, is based on financial, operational, and strategic data collected by a global team of automotive experts representing all of the major automotive markets. We looked at 808 suppliers from key regions, such as Brazil, China, Europe, India, Japan, North America, and South Korea.
PwC’s study identifies large global North American and European suppliers as the biggest consolidators in 2014. While the North American suppliers were among the largest consolidators already in the last three years, the re-emergence of the European suppliers as consolidators is a recent development. Also noteworthy is the increased involvement of Private Equity in the resurgence of automotive supplier consolidation with almost a quarter of all deals in 2014 involving Private Equity firms.