- A recent survey from EY concluded 59% of global companies are anticipating a deal over the next year. This is in part due to China's slowing economy and global growth slumping.
- This October figure ticked up from 56% in April and a marked difference of 40% just a year ago. The 59% is the highest acquisition interest in the survey's six-year existence.
- The EY survey included more than 1,600 executives in 53 countries. "The search for growth is lifting deal-making to record highs, and executives are focusing on M&A to secure innovation, competitive advantage and market share for the foreseeable future," according to Pip McCrostie, EY's global head of transactions.
The survey's results are in line with an industry highlighted this year with mega mergers and acquisitions, and consolidation rumors. Most recently, Diamond Foods investors proved interested in the possibility of a Kellogg merger, with shares rising by 9.66% the morning of Oct. 23 in pre-market trading.
In the first half of 2015, according to MergerMarket, the food subsector posted $80.2 billion in deals. That's 129.9% over the same period in 2014.
"With over 190 reported M&A transactions in the 3rd quarter of 2015, the US-based food and beverage industry is on pace to match 2014’s record levels of M&A activity," according to Travis Conway, managing director at SDR Ventures.
SDR Ventures highlighted large strategic transactions in Q3, including B&G Foods agreeing to purchase Green Giant and Le Sueur from General Mills for $765 million and SunOpta's Sunrise Growers announced acquisition for $450 million (completed Oct.12).
According to Dealogic, the Anheuser-Busch InBev acquisition of SABMiller would be the largest ever beverage indusry acquisition, valued at $104.2 billion. The deal is likely to go through in the next year, according to John Maloney, Bloomberg Law's commercial product director for corporate & transactional.