Although FY18 continues to track ahead of FY17 in terms of volume and value of Transportation and Logistics (T&L) deals, Q3’18 was the lowest volume quarter of the last three years and approaching the lowest quarter in terms of deal value over the same period.
Passenger Ground was the only sub sector to show some M&A buoyancy, with deal activity almost doubling from Q218 and Q317, supported by the only mega deal of the quarter, the $6.8bn investor group acquisition of WestConnex Motorway in Australia.
This buoyancy was partially offset by a significant drop off in Shipping deal activity, following a period of extended consolidation and a decline in Logistics, coming off record levels of activity in Q218.
- Eric Castonguay,
Partner, National Corporate Finance Leader
The Passenger Ground and Logistics sectors drove M&A activity this quarter. Together, these sectors accounted for 55% of total announced deal volume and 65% of total announced deal value.
There was one megadeal with a value greater than $5 billion announced this quarter: An investor group, comprised of AustralianSuper, Canada Pension Plan Investment Board (CPPIB), Sydney Transport Partners, and Tawreed Investments acquired a 51% interest in the WestConnex motorway project in Australia for $6.8 billion.
While strategic investments remain healthy, deals have scaled down in size as companies remain cautious to invest amongst the current global economic scenario.
Deal value remained positive over the last quarter, with average transaction value slightly increasing to reach $488.3 million.
Asia & Oceania continued to dominate deal activity with North America following second, amassing 23% of disclosed deal volume and 18% of disclosed deal value.