Mergers and Acquisitions Involving German Businesses Reach All-Time High

According to the twelve-month moving average of the ZEW-ZEPHYR M&A Index, mergers and acquisitions (M&A) with or by German businesses continue on the path to new highs. Besides a minor downward trend in 2015, the twelve-month average, which is based on the number of M&As, has grown continually since the beginning of the merger wave back in 2011. In August 2016, the twelve-month average reached a level of 96 index points, which is the highest value observed since 2009. These are the findings of a study carried out by the Centre for European Economic Research (ZEW) on the basis of the Zephyr database of Bureau van Dijk.

The high level of the twelve-month moving average cannot, however, be reduced to a few isolated outliers. In January 2016, the ZEW-ZEPHYR M&A Index had already recorded the highest monthly average since 2008 (132 index points). Between February and August 2016, however, the ZEW-ZEPHYR M&A Index additionally exceeded the 100-point mark in two more months. A comparable reading was last seen in 2009.<o:p></o:p>

"German firms are currently particularly attractive for other businesses in Germany," says Dr. Sven Heim, researcher in ZEW's Research Group "Competition and Regulation", explaining the recent development of the ZEW-ZEPHYR M&A Index. The overall number of takeovers of German businesses has grown significantly. Indeed, taking a look at the firms' countries of origin, the largest increase was observed in transactions between two German businesses. "Approximately 60 per cent of all transactions are currently being conducted within German borders," explains Sven Heim, "At the beginning of 2012, this was the case in only 50 per cent of transactions."<o:p></o:p>

In general, the number of buyers from eurozone countries (excluding Germany) is rising significantly. On average, the share of European buyers involved in M&A transactions has steadily increased, reaching a current value of 14 per cent. In 2012, this share merely amounted to 10 per cent. Buyers from outside of the eurozone are currently responsible for about 26 per cent of all transactions, which marks their lowest involvement in the German M&A market recorded in the past five years.<o:p></o:p>

For more information please contact:<o:p></o:p>

Dr. Sven Heim, Phone +49 (0)621/1235-183, E-mail heim@zew.de<o:p></o:p>