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Global Dealmaking Plummets to Lowest Level in 2 Years as Private Equity Unleashes on Deals

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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.

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