Intersections* - Global Transportation and Logistics mergers and acquisitions analysis

 Download Intersections: Global transportation and logistics mergers and acquisitions analysis; Third quarter 2008 in PDF format (137 kb)

This report covers the time period of July 2008 through October 2008 (Q3). The report will be published on a quarterly basis.

Several consequential trends are noted in this update. There were 37 deals (of which 25 did not include the US entities) announced during the third quarter of 2008 with a disclosed value of a least $50 million. When evaluating the third quarter of 2008 in isolation, it is apparent that the decline of the global banking sector and the faltering global credit markets have caused a slowdown in transportation & logistics deal activity beyond those transactions that involve US parties.

Moreover, the relative level of interest in rail and passenger ground targets increased during the first three quarters of 2008 (from 2% in 2006 up to 17% in 1Q-3Q 2008), while the contribution of deal value for passenger air targets decreased dramatically (48% in 2006 down to 12% in 1Q-3Q 2008).

Since, the turmoil in the credit markets continues having a disproportionate and negative impact on financial investors, well-capitalized strategic investors account for the majority of transactions. Looking at the regional distribution of deals, the pace of deals for targets in China remains brisk. However, the pace of deals for targets in other BRIC countries, specifically Brazil and Russia, has increased.