Global dealmaking has plunged to its lowest level since the start of the COVID-19 pandemic on rising inflation and Russia’s invasion of Ukraine, according to a report by FT Friday.
Data from Refinitiv revealed that nearly $1trillion worth of deals were signed in the first quarter of 2022, 23% below the same period last year, with all regions globally facing a fall in M&A activity.
Meanwhile, private equity groups posted their strongest ever start to the year as they unleashed cash piles accumulated during the pandemic.
Buyout groups supported $288 billion worth of deals, a 17% surge compared with the first three months of 2021.
Microsoft’s $75 billion acquisition of gaming giant Activision Blizzard is the biggest deal of 2022 so far, followed by a 21 billion euros purchase of Mileaway.
The rate of overall M&A activity has fallen as investors and executives evaluate stricter regulations, soaring inflation, and Russia’s invasion of Ukraine.