Engineering growth: First quarter 2013 engineering and construction industry mergers and acquisitions analysis

April 2013
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Engineering growth: First quarter 2013 engineering and construction industry mergers and acquisitions analysis

At a glance

Merger and acquisition activity in the engineering and construction sector declined during the first quarter of 2013, with economic uncertainty driving companies to re-evaluate their growth strategies. The M&A environment is expected to improve later in 2013, particularly with major E&C players seeking to expand their geographic footprints.

Explore the data

Explore the data

Engineering growth is a quarterly analysis of global merger and acquisition (M&A) activity in the engineering & construction industry. Each edition includes an overview of M&A results for the quarter, the significant drivers of these results, and expectations for deal activity in the quarters to come.

Here is a snapshot of what this quarter's analysis revealed:

  • Compared with the same period in 2012, deal volume and total value declined while average deal value increased to $487 million as a result of four mega deals (valued at $1 billion or more) with a combined value of more than $6.8 billion
  • Financial investor activity fell to just less than 27 percent of deal volume in the first quarter of 2013
  • Local deals accounted for 78 percent of E&C transactions during the first quarter of 2013, with Asia and Oceania continuing to be the most active regions, representing more than half of transactions worth more than $50 million
  • Deals from advanced economies increased as a proportion of total deal volume and value, with advanced economy acquirers representing nearly 70 percent of M&A activity in the first quarter of 2013

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