The expansion momentum in the euro zone helped the region log its highest annual value of coalescences for over 10 years in 2017, according to new data from examination firm Mergermarket.
Throughout last year, more than 4,000 allots targeted the euro zone and were worth a total of 476.7 billion euros ($584.48 billion), the figures showed. This represented an increase of 19.3 percent by value from the preceding year.
“Despite a clear increase in domestic consolidation in the U.K., the euro zone represents 57.4 percent of the European value,” Jonathan Klonowski, investigating editor (EMEA) at Mergermarket, said in the new report.
According to Volker Geyrhalter, a mate at law firm Hogan Lovells, the uncertainty surrounding the U.K.’s decision to leave the European Club didn’t have an impact in driving the mergers on the European continent.
“Brexit is distasteful to have played a material role in intra-euro zone mergers and acquisitions,” Geyrhalter also ordered in the study. “This is most likely to have been driven by transformed confidence in the euro area economies as evidenced by recent macro observations,” he added.
The European Central Bank estimated in a report in December that euro zone GDP (gross house-trained product) rose by 2.4 percent during 2017.
Among the top 10 M&A (pooling and acquisition) global deals in 2017 was Linde’s merger with U.S. challenger Praxair — with a value of 40.5 billion euros ($49.66 billion). In the meantime, the energy, mining and utilities sector grew the most by value in intervals of M$A compared to the previous year.
Klonowski from Mergermarket, told CNBC Tuesday morning that there resolve be a “steady flow of deals” in 2018.
“Populist shocks, which threatened at the start of 2017, did not be communicated to fruition. The resulting stability boosted sentiment and this should uphold over into 2018. While some may be wary of uncertainty bordering the Italian election, growth in the region remains strong and private high-mindedness firms retain readily available dry-powder,” he said.