Transport

Continued uncertainty over the US-China trade war, as well a mood of caution caused by the disruption of Europe’s Transport sector in the face of new technologies and regulations, created a hard landing in the second half of 2019, dealmakers told this news service. Still, there are pockets of optimism for 2020 as consolidation moves apace and low-cost opportunities arise for those with money to spend, they added.

News that Siemens’ [ETR:SIE] merger with Alstom [EPA:ALO] has been blocked on competition grounds further highlights the obstacles faced by those intent on creating “European champions” to compete with Chinese and US giants.

The ongoing trade dispute between the US and its immediate neighbors has instilled uncertainty in investors, especially about the prospects of Mexico’s auto industry.

• Deal volume 16.1% up on this time last year
• Increasing economic stability in region set to reassure investors
• PE deals and privatisations in foreground

• 2017 Nordic M&A and Private Equity activity reached their highest annual value and volume on Mergermarket record accounting for 12.6% of European activity
• The record figures were encouraged by investment in Nordic tech assets recording 153 deals in the sector
• 2018’s outlook remains positive with stable governments, low interest rates and an abundance of capital in the market

• Italian M&A activity has increased 26% by value compared to 2016
• Inbound investment has surged in the consumer sector accounting for 50.1% of market share
• Italy has brought 15 IPOs to market worth EUR 3.4bn - 2.5x more than 2016

A panel of bankers and corporates sat down at the Mergermaket Germany Forum to discuss the outlook for their sectors and companies and the M&A drivers that will play in delivering growth. Here's what they said...