A RECORD YEAR FOR
At the end of December 2014 cross-border deal values stood at $1,287 billion*
every year on record except 2007.
The result has been driven by a rise in high-value deals. Deals over $5 billion have contributed to 32% of crossborder
M&A totals – their highest percentage since 2008.
2014 saw an increase in global cross-border divestiture activities, among others via carve-outs and spinoffs,
as a growing number of corporates around the world focus on their core businesses in a bid to increase
shareholder value. Total deal value is 63% higher than the whole of 2013, standing at $574 billion – the highest
level since 2007. Total volume has reached 3,871 deals – over 498 deals higher than last year. "The trend is
likely to continue given the demands from shareholders globally. Many corporates continue to challenge their
core business portfolio", said Peter Strivens.
"Globalization is driving strategy," said Tim Gee, global head of M&A at Baker & McKenzie. "Companies want to
move into new markets where growth is greater."
M&A investment in the Healthcare sector has been a key driver of the rise in high-value deals. The sector has
had a record-breaking year with total deal values currently standing at $393 billion - 94% higher than last year
and the strongest year on record. Of these deals, $178 billion worth were cross-border - 61% of which was
made up by high-value deals over 5 billion.
"We see how high-value deals are the result of long-term strategic planning and not just reactions to
favourable market conditions. In this year, inversions unlocked some strategic moves that might otherwise
have been out of reach. But changes in tax policy are not going to put a lid on cross-border M&A, which
will remain a highly effective tool for implementing strategy. Many companies are planning cross-border
transactions in the next few years," said Mr. Gee.
CROSS-BORDER M&A 2008-2014
NOTES TO EDITORS
Baker & McKenzie advised on more announced and completed cross-border M&A deals than any other law
firm this year, according to Thomson Reuters.
The Firm acted on two of the five largest completed cross-border deals of the year so far, including advising:
• The Bank of Tokyo-Mitsubishi UFJ on financing Suntory’s acquisition of Beam Inc, a NYSE-listed premium
spirits company with a portfolio of leading global brands, for $15.7 billion; and
• Merck & Co, the US-based pharmaceutical company, on the $14.2 billion sale of its consumer care
business to Germany’s Bayer.
Baker & McKenzie has the largest M&A practice of any law firm, according to Law360.
ABOUT BAKER & MCKENZIE
Founded in 1949, Baker & McKenzie advises many of the world’s most dynamic and successful business
organizations through 5,600 fee earners and 5,300 professional staff in 77 offices in 47 countries. The Firm is known
for its global perspective, deep understanding of the local language and culture of business, uncompromising
commitment to excellence, and world-class fluency in its client service. Global revenues for the fiscal year ended 30
June 2014, were $2.54 billion. Eduardo Leite is Chairman of the Executive Committee. (www.bakermckenzie.com)
KEY DATA POINTS
has seen the highest levels
of investment on record with
total deal value currently at
$789 billion – already
50% higher than
the whole of 2013
notable growth with total deal
values at $1,645 billion
already 51% higher than
2013 totals. 19% of deal values
came from outside North America
- 7% increase on last year.
Inbound deals into
the US from Europe and Asia
Pacific increased significantly.
Investment from Asia reached
$77 billion a 111%
increase, while inbound deals
from Europe have attained
their highest levels since 2008,
currently $172 billion.
shown significant growth
– the total value of M&A
investment in the region totaled
approximately $561 billion in
2013. So far this year, the figure has
already reached $872 billion.
$281 billion has come from
outside Europe - an increase of
on last year.
*Data source: Thomson Reuters (data accurate as of 12 January 2015)
83% 85% 80% 90% 68%
17% 15% 20%
$911 $886 $900
2009 2010 2011 2012 2013 2014
Value - Deals under $5bn Value - Deals over $5bn Volume
$911 $886 $900
68% 81% 83%
32% 17% 20%
85% 80% 90% 68%