Global merger & acquisition activity topped US$1 trillion in the first half of 2010, a 9.4% increase over the previous year, according to Thomson Reuters.

The firm reports that the value of M&A reached US$1.1 trillion in the first half, with both the volume and value of deals rising year over year. Moreover, the second quarter was stronger than the first, with the value of deals increasing 5.4% to US$546.5 billion.

According to Thomson Reuters, announced M&A in Canada was up about 14% from the previous year to US$39.4 billion.

But the emerging markets drove much of the deal activity in the first half, accounting for 32.4% of the deal activity, up sharply from 19.2% in the same period last year. Total M&A in emerging markets was valued at US$345.5 billion, up 84.4% from the previous year.

Cross-border deals are also on the rise, accounting for 36.5% of the total volume in the first half of this year, up from 22.8% in the same period last year.

The energy & power sector was the most active for dealmakers, generating 19.3% of the announced transactions, followed by financials (15%) and telecoms (11.8%).

M&A advisory fees for completed transactions also rose from the same period last year, up about 41%.

Goldman Sachs led the first half league tables for announced global transactions, followed by Morgan Stanley and Deutsche Bank AG. The only Canadian firm to crack the top 25 was RBC Capital Markets in 23rd spot, down from 21st place last year.

Goldman also led in terms of completed global deals, with JP Morgan second and Morgan Stanley in third place. No Canadian firms ranked in the top 25.

Looking at announced deals with some Canadian involvement, Goldman was also the top advisor there, followed by RBC, TD Securities, and CIBC World Markets. In terms of completed deals, TD led the way, followed by CIBC, Deutsche Bank, Credit Suisse and BMO Capital Markets.

IE