S&P Global Market Intelligence's Big Picture M&A Report Examines the Drivers that Can Set the Pace for the Recovery in Dealmaking

Rhea-AI Summary

S&P Global Market Intelligence has released an analysis examining key M&A trends through 2025. While M&A announcements have increased in 2024, they remain below pre-pandemic levels and far from 2021's records. Private equity firms are showing increased activity and are expected to deploy more capital in a lower rate environment. The report highlights that oil and gas sector consolidation continues despite antitrust concerns, with North American transactions reaching record levels. The technology sector shows potential for recovery, though traditional strategic acquirers remain less active. Lower interest rates and a less restrictive regulatory environment are expected to create more favorable conditions for dealmaking.

Positive

• Private equity firms showing increased activity in larger deals
• Record levels in North American oil and gas M&A transactions
• Improved revenue outlook for technology industry
• Expected favorable conditions with lower interest rates

Negative

• M&A activity remains below pre-pandemic levels
• participation from traditional strategic acquirers in tech sector

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NEW YORK, Nov. 21, 2024 /PRNewswire/ -- S&P Global Market Intelligence has released an analysis examining the key strategic trends and opportunities that are expected to drive the M&A narrative through 2025. The newly published report, M&A Outlook: Bright spots, shadows on dealmaking horizon, is part of S&P Global Market Intelligence's Big Picture 2025 Outlook Report Series.  

M&A announcements have showed signs of increasing in 2024 but remain below pre-pandemic levels and are far off 2021's record levels. Achieving new peaks will take time, and major M&A players can set the recovery's pace.

In this new report, S&P Global Market Intelligence experts highlight some of the areas that can help set the pace of the M&A recovery. Private equity firms have been more active and should continue to deploy capital, especially in a lower rate environment. Consolidation in the oil and gas sector is set to resume after a brief pause. Major technology players have helped fuel past M&A booms, but they have remained largely sidelined.  

"There is still plenty of room for growth in the M&A market," said Joe Mantone, one the of the authors of the S&P Global Market Intelligence report. "Lower interest rates and a less restrictive regulatory environment should make the dealmaking environment more conducive."

Key highlights from the report include:

• Private equity has increasingly inked larger deals. This marks a shift after two years of slowing M&A and focusing on smaller transactions, such as corporate carve-outs.
• Antitrust concerns have done little to derail the blockbuster oil and gas mergers. Large deals have pushed North American oil and gas M&A transactions to record levels and regulators have yet to stop a $1 billion-plus transaction that has been announced since late 2023.   
• Traditional strategic acquirers have been less active in the technology space and their participation is needed in order for the sector to produce a meaningful M&A recovery. However, the revenue outlook has improved for the industry, and private equity buyout firms are pursuing more deals.

To request a copy of M&A Outlook: Bright spots, shadows on dealmaking horizon, please contact press.mi@spglobal.com

S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

Media Contact  
Katherine Smith
S&P Global Market Intelligence
+1 781-301-9311
katherine.smith@spglobal.com or press.mi@spglobal.com

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SOURCE S&P Global Market Intelligence

FAQ

What are the key findings in S&P Global's (SPGI) 2025 M&A outlook report?

The report highlights increased private equity activity, record oil and gas sector M&A deals, and potential recovery in tech sector dealmaking, though activity remains below pre-pandemic levels.

How is the 2024 M&A market performing according to S&P Global (SPGI)?

While M&A announcements have shown signs of increase in 2024, they remain below pre-pandemic levels and significantly lower than 2021's record levels.

What sectors are driving M&A activity in S&P Global's (SPGI) 2025 outlook?

The oil and gas sector is showing strong consolidation with record North American M&A levels, while private equity firms are increasingly active across sectors.