Global automotive deals insights: Q3 2018

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Executive summary

Global automotive M&A deal value reached $59.3 billion for the year in Q3 2018 resulting in the highest year to date value in the last ten years. Deal value for the quarter came in at $18.3 billion, marking a 17% increase from Q2 2018 and a 103% increase over the same period in the prior year. Value was driven by six large (greater than $1 billion) deals announced in the quarter.

Tempering enthusiasm in Q3 2018 was the lowest recorded number of deals in the previous 12 quarters at 177 deals, down 18% from Q2 and down 6% from the same period in the prior year. Year to date volume totaled 653, down 4% from YTD Q3 2017. Lower volumes, higher values and other indicators suggest a supply problem; too many buyers chasing too few deals.

Local deals continue to dominate the landscape and despite headlines around electrification and autonomous, the biggest drivers of deals in 2018 are industry consolidation and product diversification.

Uncertainty, including rising interest rates, tariffs, trade wars, and concerns over global growth will influence deal makers in the coming quarters.

Key trends and highlights

  • Deal value in Q3 2018 totaled $18.3 billion, up from the prior quarter and prior year. Year to date deal value of $59.3 billion is on pace to be the highest in the last ten years.
  • There were 177 deals announced this quarter, 18% lower than Q2 2018 bringing the YTD volumes down 4% compared to YTD Q3 2017.
  • A $2.6 billion acquisition was the largest deal this quarter, with six other deals announced in excess of $1 billion, bringing the YTD total to 13 deals greater than $1 billion compared to six in all of 2017.
  • Average disclosed deal size for Q3 2018 was $217.9 million, 13% higher than Q2 2018, and 69% higher than Q3 2017.

“Despite record values, Automotive M&A activity hits a speedbump in Q3 as too many buyers chase too few deals.”

Jeff Zaleski, US Automotive Deals Leader

Contact us

Jeff Zaleski
US Automotive Deals Leader, PwC US
Tel: +1 (313) 394 3525

Ray Telang
Automotive Leader, PwC US
Tel: +1 (313) 394 6738

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