Traditional Industries Continue to Dominate U.S. Mega Mergers


Traditional Industries

U.S. mega deals since 2010 have clustered around typical industries, including Food, Pipelines, Media and Chemicals, according to Bloomberg data.

Over that same time period, the top industry for mega deals was Pharmaceuticals, with an aggregate deal value of $676.9 billion and an average deal size of $35.6 billion over 19 deals.  Mega deals are defined as those valued at more than $10 billion.

The leading industry for mega deals in 2016 was Biotechnology, with an aggregate value of $142.4 billion and an average deal value of $35.6 billion across four deals.

What Industries Are Driving Mid and Large Market Mergers?

While traditional industries make up most of the mega deals over the last six years, mid and large market deals have centered around Real Estate/REITs, Pharmaceuticals, Commercial Services and Oil & Gas.  Mid and large market deals are defined as those valued at $100 million to $10 billion.

In the mid and large markets last year, the leading industry was Software, with an aggregate value of $90.6 billion and an average deal value of $1.3 billion across 69 deals.  Since 2010, the top industry for the mid and large markets was Oil & Gas, with an aggregate deal size of $375.1 billion and average deal size of $757.8 million across 495 deals.

Interestingly, Oil & Gas and Pipeline deals have become predominant across all markets, reflecting the major restructuring of the energy market.

For more on the latest trends in U.S. M&A, Bloomberg Law subscribers can access the Quarterly M&A Market Update.