Global transportation and logistics M&A deals insights: 

Q4 2016 update
 

Executive summary

The global Transportation and Logistics sector closed 2016 at a relatively stable level of M&A activity. A total deal value of $53.5 billion in H2 2016 for deals with disclosed value greater than $50 million was 22% lower than H1 2016 and deal activity for the year was 6% lower than 2015.

Even so, 2016 was not without industry-altering activity in the Trucking, Shipping and Passenger Air categories.

At $16.8 billion, Maanshan Dingtai’s acquisition of SF Holding was the largest deal this year. In general, the Trucking category has been on the rise, contributing to the highest share of deal value and generating the highest average deal size this year.

Meanwhile, Avolon’s acquisition of CIT’s commercial air business and Alaska’s acquisition of Virgin brought considerable change to the Passenger Air business.

As the Shipping industry continues to face challenges, financial investors have seen an opportunity to intervene. Specifically, investor groups in Australia took charge by acquiring Port of Melbourne Corp. and Asciano Ltd. for a combined deal value of $16.1 billion.

transportation and logistics deal value and volume
transportation and logistics deal value and volume data

transportation and logistics deal disclosed value

Key trends/highlights

  • While H2 2016 recorded an increase of 6% in deal volume, deal value in the T&L sector fell by 22% compared to H1 2016.
  • On an annual basis, 2016 brought stable activity but significantly lower value to the T&L sector. Although deal volume only fell by 6%, deal value was 31% lower than in 2015.
  • Megadeals continue to drive deal value in T&L, however, at a lower rate. Transactions with announced value greater than $1 billion made up 60% of total deal value in 2016, compared to 68% in 2015.
  • In 2016, the Asia & Oceania region accounted for 52% of total deal volume and 60% of total deal value in the T&L sector, maintaining its position as the region with the most M&A activity.
  • The Trucking, Shipping and Passenger Air categories led deal value in 2016, accounting for nine of the top ten deals throughout the year.
  • The Trucking category had a paramount year in terms of deal value and average deal size. The category closed 2016 with the largest average deal size, 141% higher than in 2015.

For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our

Global Transportation and Logistics M&A Deals Insights: Q4 2016 update.