European M&A slump deepens in Q3

M&A activity in Europe hit a five-year low in the third quarter, S&P Global Market Intelligence data shows.

There were 2,520 deals during the third quarter, down almost 27% quarter over quarter, with a total transaction value of €107.4 billion. This represents the sixth decline in deal volumes in the past seven quarters, and the weakest quarter for European M&A since at least 2018.

Chicago-based private equity firm GTCR LLC's July acquisition of a 55% stake in WorldPay (UK) Ltd. for €11.68 billion was the biggest deal of the quarter, and the third-largest deal so far this year.

Bunge Ltd.'s €16.70 billion acquisition of Dutch agribusiness Viterra Ltd. in June remains the biggest transaction of the year so far, followed by Carrier Global Corp., through its Blitz F23-620 GmbH subsidiary, buying Viessmann Climate Solutions SE in April for €12 billion.

Dealmaking activity in September was led by transactions involving Spanish companies Applus Services SA and Telefónica SA.

Investment firms I Squared Capital Advisors (UK) LLP and TDR Capital LLP made a joint bid to acquire industrial testing company Applus for €9.75 per share, representing a transaction value of €2.21 billion. The deal challenges the bid of Apollo Global Management Inc., which offered to acquire Applus for €9.50 per share in June.

Applus' shares rose to €9.87 per share on Sept. 14 following the offer from I Squared and TDR Capital.

The transaction was followed by Saudi Telecom Co.'s €2.12 billion investment in telecommunications service Telefónica. Saudi Telecom acquired a 9.9% stake in the company, though the Spanish government will scrutinize the deal.

Other notable transactions include Norway-based energy data and analytics company TGS ASA's bid to acquire its peer PGS ASA for €1.48 billion, Markerstudy Insurance Services Ltd.'s planned purchase of Atlanta Investment Holdings 3 Ltd. from The Ardonagh Group Ltd., valued at €1.4 billion, and French packaging manufacturer Orora Ltd.'s deal to buy Olympe SAS for €1.29 billion.

The volume of deals in September increased to 791 from the previous month's 704, but aggregate transaction values fell roughly 31% to €25.61 billion

– View the deal profile page for the Applus transaction. – Use the screener tool to access M&A data.