Euro News Source
No Result
View All Result
Friday, June 24, 2022
  • Login
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
Subscribe
Euro News Source
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videosnew
No Result
View All Result
Euro News Source
No Result
View All Result
Home News Germany

German first-quarter dealmaking slides to six-year low due to Ukraine war jitters

by Francesco Mazzagatti
March 28, 2022
in Germany
A A
0
152
SHARES
1.9k
VIEWS
FacebookTwitterLinkedin

The Frankfurt skyline is pictured, as the spread of the coronavirus disease (COVID-19) continues, in Frankfurt, Germany, January 5, 2022. REUTERS/Kai Pfaffenbach

Register now for FREE unlimited access to Reuters.com

  • German Q1 M&A down 10% in slowest start since 2016
  • German ECM deals down 88% due to market volatility
  • Mid-market dealmaking hit seven-year record high
  • Technology and infrastructure seen as resilient sectors

March 28 (Reuters) – Mergers and acquisitions in Germany in the first three months of 2022 have dropped 10% from the same period in 2021 in what has been the slowest start to a year since 2016 due to market uncertainty caused by Russia’s invasion of Ukraine.

Equity capital markets in the euro zone’s biggest economy have been hit harder as market jitters have led to a total dearth of deals with no initial public offerings (IPOs) or convertible offerings recorded so far this year, according to Refinitiv data.

“It is unlikely that companies will choose to list before Easter, even unlikely before the summer given current market conditions,” said Armin von Falkenhayn, head of corporate and investment banking in Germany, Austria and Switzerland at Bank of America (BAC.N).

Register now for FREE unlimited access to Reuters.com

German equity capital markets raised only $1 billion so far this year, down 88% compared with the first quarter of 2021.

But appetite for M&A deals remains strong even if boardrooms have become more risk-averse.

“Unlike at the beginning of the coronavirus crisis, the M&A market has definitely not come to a standstill and projects are continuing. But parties are examining very carefully how the conflict may affect each company,” said Tibor Kossa, co-head of German and Austrian M&A at Goldman Sachs (GS.N).

While the Ukraine crisis has affected only around 1-2% of German companies’ sales, “the war and its longer-term consequences absorb a lot of management capacity,” said Berthold Mueller, chairman of DACH investment banking at Jefferies.

Yet amid prevailing caution to begin new processes, some auctions that were launched before the war managed to get to the finish line.

One such example was Siemens’ (SIEGn.DE) $1.3 billion carve-out of its mail and parcel logistics business, which was sold to Hamburg-based Koerber (KRBR.UL) in February and led to consumer products and services accounting for one-third of German target M&A in the first quarter. read more

Other deals in the technology sector contributed to 31% of German target M&A including the purchase by Italian infrastructure and transport services firm Atlantia (ATL.MI) of Siemens’ traffic software solutions business, Yunex.

Strong growth in the technology sector contributed to an increase in mid-market deal activity to its highest year-to-date total since 2015, according to Refinitiv data.

“Private equity remains open to acquisitions and transactions can continue to be funded,” said Christopher Droege, co-head of German and Austrian M&A at Goldman Sachs.

EYES ON TRANSATLANTIC TIE-UPS

One sector that seems resilient to the backdrop of war is telecommunications – arguably a necessity for information flow in times of crisis.

Earlier this month, Deutsche Telekom (DTEGn.DE) launched the sale of its towers business and is collecting indicative offers together with adviser Goldman Sachs, in a deal that could value the business at close to 18 billion euros ($19.86 billion). read more

Dealmakers say there are intense dialogues with corporate clients as well as private equity and the deal pipeline for the rest of the year looks intact.

Transatlantic tie-ups could increase as the European landscape becomes more challenging.

“In the future we expect that German companies looking for takeovers will orient themselves increasingly towards North America since the growth gap between Europe and the United States is likely to widen further in the current environment,” Goldman’s Kossa said.

Nevertheless, dealmaking during wartime remains hard to stomach for some parties that prefer to wait for peacetime.

“A buyer cannot go before their board of directors and pretend this war does not exist. The question is how long this situation will last. That is why many companies tend to wait until the situation clears up,” said Jefferies’ Mueller.

($1 = 0.9061 euros)

Register now for FREE unlimited access to Reuters.com

Reporting by Emma-Victoria Farr in London and Alexander Huebner in Munich
Editing by Pamela Barbaglia and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Source: Reuters

Tags: BACTBISVBISV08CEEUCMPNYCOENCOEN08CONGCONG08DEDEAL1ELCOELCO08EUROPEZCFINFINE1FINSFINS08FUNDGBINDGINDG08INDSINDS08INVBISINVBNKINVBRINVBR1INVMINVS08IPOISERISER08ISUITMACHMACH08MEVNMRGMTPIXNCYCPHONPHON1PUBLPVEPVE08RDRLRDRL1RORA08TCOMTECHTECH08TELCONTMTTNSITPTTRANUKWEUWLESWLES1

Related Posts

Germany

Germany plans new arms exports rules, easier exports to Ukraine – Der Spiegel

June 10, 2022
Germany

Germany pledges medical aid to Ukraine

June 10, 2022
Germany

Polish president says calls with Putin like speaking to Hitler -Bild

June 9, 2022
Germany

Man rams car into crowded Berlin shopping street, one dead

June 8, 2022
Germany

Germany introduces bill to accelerate wind power expansion

June 8, 2022
Germany

Car drives into crowd on Berlin shopping street, one dead

June 8, 2022
  • Trending
  • Comments
  • Latest

Woman livestreams fatal stabbing of half-sister

October 25, 2021

Prison sentences for protestors who pray outside abortion clinics in Spain

February 4, 2022

Investigation opened into porn video recorded on altar of Flemish church

November 3, 2021

Irish couple, 23 and 26, ‘carry out vicious knife attack in Sydney’

October 14, 2021
Freedom Day

Freedom Day

0
Fire Accident

Fire Accident In Iraq

0
Scotland

Advice from the Scotland Prime Minister

0
Brexiteers

Brexiteers Should Thank The EU

0

England 5-1 Netherlands: Lionesses occur from at the rear of for impressive win as Bronze, Mead, Toone and Hemp rating

June 24, 2022

‘I hope you are screaming at the screen’ – Grossman wins women’s boulder at Climbing Planet Cup

June 24, 2022

Woman gives birth on Spanish metro with help of staff and a passenger

June 24, 2022

‘Thrilled to be in the final’ – Maxime Cressy ends Jack Draper’s Eastbourne dream immediately after beating 20-year-aged

June 24, 2022

Recent Posts

England 5-1 Netherlands: Lionesses occur from at the rear of for impressive win as Bronze, Mead, Toone and Hemp rating

June 24, 2022

‘I hope you are screaming at the screen’ – Grossman wins women’s boulder at Climbing Planet Cup

June 24, 2022

Woman gives birth on Spanish metro with help of staff and a passenger

June 24, 2022

‘Thrilled to be in the final’ – Maxime Cressy ends Jack Draper’s Eastbourne dream immediately after beating 20-year-aged

June 24, 2022

Manchester City reportedly agree a rate with Leeds United for midfielder Kalvin Phillips as transfer edges closer

June 24, 2022

Mild and sunny weekend in store for much of Spain: weather forecast June 24-26

June 24, 2022

Recent Posts

  • England 5-1 Netherlands: Lionesses occur from at the rear of for impressive win as Bronze, Mead, Toone and Hemp rating
  • ‘I hope you are screaming at the screen’ – Grossman wins women’s boulder at Climbing Planet Cup
  • Woman gives birth on Spanish metro with help of staff and a passenger
  • ‘Thrilled to be in the final’ – Maxime Cressy ends Jack Draper’s Eastbourne dream immediately after beating 20-year-aged
  • Manchester City reportedly agree a rate with Leeds United for midfielder Kalvin Phillips as transfer edges closer

Categories

  • Austria
  • Bahamas
  • Belarus
  • Belgium
  • Breaking News
  • Brexiteers
  • Business
  • China
  • COVID Cases
  • Covid-19
  • Cyber security
  • Debt
  • Economics
  • Energy
  • England
  • Fashion
  • Fire Accident
  • France
  • Freedom Day
  • Germany
  • Health
  • Human Launch
  • Humanitarian
  • Ireland
  • Italy
  • Netherlands
  • News
  • Norway
  • Opinion
  • Politics
  • Refugees
  • Russia
  • Russia
  • Rwanda
  • Saudi Arabia
  • Science
  • Scotland
  • Scotland
  • Spain
  • Spanish-Flu
  • Sports
  • Switzerland
  • Travel
  • Ukraine
  • United Kingdom
  • Videos
  • Wales
  • Zambia

Site Navigation

  • About
  • Advertise
  • Guest Post
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
Euro News Source

Euro News Source is one of the best sources of European News. We provide the latest news from the European Union and its member states, local and international political, economic and sports news. Follow us to receive all news from around the European Union.

© 2021 Euro News Source.

No Result
View All Result
  • Home
  • Latest News
    • All Europe
    • United Kingdom
      • England
      • Ireland
      • Scotland
      • Wales
    • France
    • Germany
    • Italy
    • Spain
    • Austria
    • Belgium
    • Netherlands
    • Switzerland
  • Economics
  • Politics
  • Health
  • Sports
  • Videos

© 2021 Euro News Source.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?