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2013 sees lowest automotive M&A activity in a decade

Despite a call for increasing consolidation, tellurian automotive merger-and-acquisition activity in a zone declined to a lowest indicate in a decade in 2013.

During a year, 465 automotive exchange were finished with a understanding value of $22 billion, according to PricewaterhouseCoopers LLP’s Driving Value: 2013 Automotive MA Insights news expelled Tuesday.

The MA deals of 2103 were down compared to a 490 exchange value $30 billion in 2012. Last year’s transaction sum was a lowest given 2001 and a lowest understanding value given 2003.

Automaker- and supplier-led deals forsaken significantly in a year, down 28 percent and 14 percent, respectively. However, understanding values were up, attack $12.1 billion, interjection to a recuperating market.

Financial buyer-led deals were prosaic in 2013, though understanding value was adult 119 percent to $9.2 billion compared to 2012.

The increasing values were stemmed by a clever rebate in deals, according to a report.

Europe remained a many active MA marketplace in automotive with 177 deals. However, a slow effects of an mercantile fall brought values down, totaling $511,000 in 2013 compared to $1.3 million in 2012.

Asian companies led a largest deals, totaling $8.1 billion in 2013, with 58 percent of targets in Europe.

Paul Elie, personality of PricewaterhouseCoopers’ automotive transaction service, pronounced a decrease in deals was led by macroeconomic trends, though he pronounced he expects some-more deals in a future.  

“The negligence expansion in building markets, many particularly China and Brazil, joined with doubt around a European recovery, has caused marketplace participants over a final integrate years to consider twice before investing in these markets,” Elie pronounced in a news release.  

“… Automotive companies with clever change sheets will continue to demeanour for vital investments that yield them with a event to urge or enhance their technological, patron or geographic presence.”

The news suggests an increasing understanding activity due to building technological megatrends, vast amounts of money on association change sheets, a reemergence of a European marketplace and a need to grow marketplace share and customers.

Dustin Walsh: (313) 446-6042, [email protected]. Twitter: @dustinpwalsh

Article source: http://www.crainsdetroit.com/article/20140429/NEWS/140429827/2013-sees-lowest-automotive-ma-activity-in-a-decade

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