Cross-border deal is the only $10B-plus M&A transaction announced in August

Just one global M&A deal was announced in August with a transaction value topping $10 billion.

In a combination of luxury brand retailers, New York-based Tapestry Inc. announced an acquisition of London-based Capri Holdings Ltd. in a deal with a transaction value of roughly $10.33 billion including assumed liabilities, according to S&P Global Market Intelligence data. The deal was only the second $10 billion-plus transaction announced in the third quarter.

Cross-border activity

The Tapestry and Capri deal marked the third straight $10 billion-plus M&A transaction that involved a European-based target and a US-based buyer. In the previous two, Chicago-based private equity firm GTCR LLC agreed to purchase a majority stake in London-headquartered WorldPay (UK) Limited from Fidelity National Information Services Inc. for $12.70 billion, and St. Louis-based Bunge Ltd. reached a $17.94 billion transaction agreement with Viterra Ltd. in a combination of agribusinesses.

With those deals, a total of six cross-border $10 billion-plus transactions have been announced in 2023. That tally is tracking ahead of the 2022 full-year total of seven and near the 2021 full-year total of 10 cross-border $10 billion-plus transactions.

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The total number of all large deals is on pace to fall in 2023. Through August, there have been 13 announced $10 billion-plus M&A transactions this year, while that number reached 27 in full-year 2022 and 36 in full-year 2021.

Several factors have been weighing on dealmaking, including the higher interest rate environment, a more stringent regulatory approval process and a possible economic downturn.

Large deals by sector

One of the sectors that saw a significant drop-off in large deals is technology, media and telecommunications (TMT). Just two TMT M&A transactions larger than $10 billion have been announced in 2023, while full year 2022 produced eight and full year 2021 produced seven.

The Tapestry and Capri deal brings the total number of $10 billion-plus consumer deals in 2023 to two, which is the same total the sector produced in all of 2022 and one more than the full-year 2022 total of one. In 2023, consumer trails only healthcare, which has had three announced $10 billion-plus M&A transactions.