Both deal volume and value in the transportation and logistics industry declined during the first quarter of 2008, according to the PricewaterhouseCoopers LLP Q1 2008 edition of Intersections: Global Transportation & Logistics Mergers and Acquisitions Analysis. Global deal activity is not on track to match the levels seen in 2007; however, the 45 deals (worth at least $50 million each) announced in the first quarter is on track to exceed 2006 levels.
The credit markets and slowing deal activity in the United States significantly affected deal volume in the first quarter of the year. When excluding deals in which a U.S. entity was the acquirer or target, the number of deals (38 deals) is on pace to exceed both 2006 and 2007 levels (119 and 142 deals respectively), indicating that a concern over an economic slowdown in the United States may be lowering the attractiveness of U.S. targets, as well as the willingness and ability of U.S. acquirers, to make deals, according to the PricewaterhouseCoopers analysis. Additionally, deal value for non-U.S. acquirers and targets ($15.9 billion) is also on pace to exceed the $53.4 billion reached in 2007.
For more information and to access the full report, visit www.pwc.com/transport.