Supply chain deals boost global M&A activity in Q1: expert

Supply chain M&A deals totalled US$52b across 19 transactions.

Mergers and acquisitions (M&A) surged by 38% globally in the first quarter from the year prior, bolstered by the flurry of deals involving supply chains, according to GlobalData.

Data from the analytics firm showed supply chain-related M&A deals totalled US$52b across 19 transactions last quarter, making it the largest theme among the world’s 150 biggest M&A deals in those three months.

GlobalData thematic intelligence analyst Priya Toppo said much of the activity was in the consumer, basic materials, transportation, infrastructure, as well as the logistics and industrials sectors, after the changing macro landscape has shifted the investment focus to these supply chain-related businesses.

Toppo said heightened geopolitical tensions, population growth, labor shortages, ESG, rising e-commerce activities and digital transformation have all contributed to the shift. 

Life science investor Novo Holdings has recorded the biggest supply chain M&A deal last quarter with its $17b acquisition ofUS contract drugmaker Catalent. This was followed by the sale of fill-finish manufacturing facilities to Novo Nordisk from Novo Holdings for $11 billion as part of the takeover deal with Catalent.

Taking the third spot was state-backed Japan Investment Corporation buying out chip materials manufacturer JSR for $6 billion.

“The M&A outlook for the rest of 2024 remains cautiously optimistic, as the prospect of rate cuts in certain markets and a generally improving global growth outlook could see an increase in activity throughout the year,” said Toppo. “Mega deals will continue to face hurdles, especially in the US, where antitrust concerns have been a focus of regulators.”