The global Transportation and Logistics (T&L) sector reported 61 deals in Q1 2018. While deal value increased by 114%, deal volume declined by 12%, over the same quarter of last year.
Passenger Ground and Passenger Air accounted for the value increase, mainly driven by a single megadeal, the joint bid of Atlantia SpA and ACS/Hochtief AG for Spanish road transportation operator Abertis Infraestructuras SA (deal value $22.5 billion).
Shipping led the volume decline, experiencing a 50% year on year decline in the number of deals.
- Eric Castonguay,
Partner, National Corporate Finance Leader
Although transaction volume declined for the second quarter in a row, total announced deal value reached $43.8 billion, the highest quarterly value recorded over the last three years.
Deal volume surged in the Passenger Air sector, increasing by 78% over last quarter to 16 deals making this sector the largest contributor to deal volume.
Financial investments scaled up to peak levels this quarter, totalling $35.1 billion and accounting for 80% of deal value.
The acquisition of Abertis Infraestructuras SA for $22.5 billion was the only megadeal announced with a value greater than $5 billion. The transaction contributed 51% of total deal value and it is the largest deal reported since 2013.
The Asia & Oceania region continues to drive M&A volume, with local deals in China accounting for 40% of the top 20 deals by value. The UK & Eurozone region represented 53% of total deal value by acquirer region.