European deals dominate emerging market M&As, mergermarket report says

European M&As were up 51.3 percent by value and 19.2 percent by deal count from the same period of last year, a report released by mergermarket shows. The emerging markets saw USD 357.8 billion worth of deals announced in Q1-Q3 2010, up 52.1 percent from the same period in 2009. However activity dipped in Q3 2010, with only USD 98.6 billion worth of deals announced, the lowest since Q3 2009. European inbound and outbound M&A dominated the majority of activity in the emerging markets in Q1-Q3 2010.

European buyers are the most active in the emerging markets, accounting for 55.1 percent of inbound M&A activity. European corporations are also the favored targets of emerging market based acquirers, accounting for 42.4 percent of total outbound M&A activity.

Brazil and India were the most appealing targets in the emerging markets for the first three quarters of 2010, representing 24.3 percent and 23.2 percent of inbound emerging markets M&A activity. Energy, Mining & Utilities was the most active sector representing 39 percent of the emerging markets activity.

Herbert Smith/Gleiss Lutz/ Stibbe was the most active legal adviser within the emerging markets, advising on 20 transactions worth a total of USD 65.1 billion. Cleary Gottlieb Steen & Hamilton followed with USD 53.4 billion from 21 deals. AZB & Partners was the most active legal firm by deal count.

Global M&A activity totaled USD 1,422.9 billion for the first three quarters of 2010, up 25 percent from the same period in 2009. Deal count was also up by 18 percent at 8,102 announced deals. Skadden Arps Slate Meagher & Flom are the leading legal advisers, having advised on 139 deals worth a total of USD 245.1 billion in the first three quarters of 2010. They also lead the tables in the Americas with 119 deals worth USD 198.7 billion, though in Europe they come just behind first placed Slaughter & May. In Asia-Pacific, Herbert Smith/Gleiss Lutz/Stibbe top the tables.

Private equity-backed buyouts reached USD 69.8 billion in Q3 2010, the highest quarter since Q2 2008. Activity for the first nine months of the year had a total value of USD 151.3 billion, 94.2 percent more than the same time period in 2009.

Cross-border activity between regions has reached USD 390.7 billion so far this year, up 109 percent compared to the first three quarters of 2009. The largest cross-border deal so far this year is also the largest overall deal of the year – BHP Billiton’s hostile USD 41.9 billion bid for Potash. Cross-border deal flow makes up 27.5 percent of all global activity so far this year, the second highest percentage on mergermarket record.