After a record peak in Q4 2017, Consumer Markets deal activity declined in Q1 2018. Demographic factors and the impact of technology continued to drive companies to reassess their core businesses driving M&A in the sector, although at a slower pace than in 2017 due to continued market uncertainty around tax reform and uncertainties around the recent tariff announcements. Both deal volume and value decreased in the sector during the quarter compared with Q4 2017 to $60.3 billion and 494 deals, respectively.
The largest transaction in Q1 2018 was the pending acquisition of Dr Pepper Snapple Group Inc. by Keurig Green Mountain (ultimately owned by JAB Holding Company) for $18.7 billion. There were four megadeals (transactions >$5.0 billion) announced this quarter totaling $39.8 billion or 66% of total deal value, a 3% decrease compared with last quarter.