In the first quarter of 2012 there were five mega-acquisitions with a transaction value of $1 billion or more. Last year there were a total of only eleven such large transactions. In Q1 34 global transactions were closed with a transaction value of $50 million or more. Of those 34 deals, a European company was acquired in six cases and nine times it was a European company who did the acquisition.
Total transaction value increased
Last year there were a total of 177 worldwide mergers and acquisitions worth $50 billion or more. This year, that number will certainly be matched, and the total transaction value could be considerably higher, says Klaus-Dieter Ruské, head of the international transport and logistics division of the consulting firm.
Following the acquisition of TNT by UPS, acquisitions in the express and parcel delivery sector probably won’t be of a similar scale. Fedex is limiting themselves to small acquisitions, such as the French Tatex and the Polish Opek. DHL also has indicated to do no major acquisitions.
Buying interest decreased
“Beside the increase in mega-acquisitions, buying interest in the logistics industry will be limited”, says Ruské. Companies are primarily interested in taking over niche players and complementing their organization. The exception is the shipping industry. In previous years, the transaction activity in the shipping industry was low, despite overcapacity and low tariffs. However, this year, major container shipping companies will consolidate and increase their acquisition activity.