Deal value in the global T&L sector increased by 13% over FY17, largely driven by a number of $billion deals in H118. Total deal value in H218 decreased over 40% from H118, as volume dropped by 21% and $billion deal activity dropped by over half of its H118 value.
On a sub sector basis, year on year increases in deal value in Passenger Air (mainly airport concessions) and Passenger Ground (mainly motorway infrastructure), supplemented by continued growth in Logistics M&A, outweighed significant decreases in both the Trucking and Shipping categories.
M&A activity in 2018 remains healthy in the T&L sector, with 240 deals announced in 2018. While Q2 and Q3 2018 experienced declining activity, deal volume grew by 4% to 54 deals in the last quarter of the year. However, in comparison to 2017, the number of deals announced in 2018 decreased by 18%. Continued value growth in 2018 led to an average deal size of $485.1 million, a 34% increase from 2017, largely driven by an increasing number of $billion deals. Q1 2018 was the most active quarter for M&A deals this year, accounting for 31% of deal volume in 2018 and reaching the highest deal value recorded in the past three years.
In March 2018, Italian toll-road company Atlantia SpA, ACS, and Hochtief of Germany announced a joint bid to acquire Spanish road transportation operator Abertis Infraestructuras SA for $22.5 billion. The deal was completed in October 2018.
Two megadeals took place in 2018 in comparison to only one in 2017. The share of transactions with announced value greater than $5 billion increased to 24% in 2018, from 6% in 2017.
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