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$45 Billion Thursday For M&A Shows There Are Still Plenty Of Buyers Out There

$45 Billion Thursday For M&A Shows There Are Still Plenty Of Buyers Out There
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After Q1 was the weakest quarter for global M&A activity in more than two years, the M&A market showed some major signs of life this week when three major pharmaceutical deals were announced on Thursday.

Abbott Laboratories (NYSE: ABT) announced a $30 billion buyout of St Jude Medical, Inc. (NYSE: STJ), AbbVie Inc (NYSE: ABBV) announced a $5.8 billion bid for Stemcentrx and Sanofi SA (ADR) (NYSE: SNY) announced a $9.3 billion offer for Medivation Inc (NASDAQ: MDVN).

All together, the three deals totaled more than $45 million in a single day.

The flurry of activity seems to indicate that the M&A market is alive and well after activity dropped in Q1 to multi-year lows.

Related Link: The Largest M&A Spreads On The Market

Last year, global buyers spent a record $3.8 trillion on acquisitions, eclipsing the previous record set back in 2007.

The total value of global M&A deals in Q1 came in at $861.7 billion, down 52 percent compared to Q1 2015.

The two largest deals of Q1 were CNAC Saturn's $43 billion buyout of Syngenta AG (ADR) (NYSE: SYT) and Shire PLC (NASDAQ: SHPG)'s $32 billion buyout of Baxalta Inc (NYSE: BXLT).

The latest flurry of activity indicates that the healthcare sector is still ripe for M&A, even after the massive $160 billion Pfizer Inc (NYSE: PFE)/Allergan plc Ordinary Shares (NYSE: AGN) deal was blocked earlier this month.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: News M&A Top Stories Best of Benzinga


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