October 24, 2019 / 7:03 PM / a month ago

Global auto deals dry up in third quarter amid slowing economy - PwC

(Reuters) - M&A activity in the global automotive sector plunged in the third quarter, PricewaterhouseCoopers LLP said in a report here on Thursday, citing fewer big-ticket deals.

Mergers and acquisitions around the world have sunk to three-year lows, accelerated by trade tensions and growing economic uncertainty.

The size of automotive deals in the quarter declined to $7 billion (£5.44 billion) in the quarter from $18 billion a year earlier, PwC said.

The industry’s M&A volumes tumbled to a seven-quarter low, falling 16.5% to 197 deals, according to the report.

Hyundai Motor Co’s (005380.KS) $1.6 billion joint venture with U.S.-based Aptiv Plc (APTV.N) was the biggest deal in terms of value in the quarter.

The industry deal volume has fallen by 24% to 604 deals so far this year, while the deal size has halved to $31 billion, the auditing firm said.

German auto parts maker ZF Friedrichshafen AG’s $7.4 billion deal to buy WABCO Holdings (WBC.N) in March is the biggest automotive deal so far in 2019.

Although technology was the main driver of M&A activity in the third quarter, it might not be so going forward with the sector facing leaner times, , PwC said.

“Deal makers are letting the dust settle and are focusing on the development of their previous bets,” PwC said.

However, with both strategic and financial investors remaining in a position to buy, there is reason to believe M&A could bounce back if more attractive assets become available, PwC said.

Reporting by Ashwini Raj in Bengaluru; Editing by Maju Samuel

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below