August 31, 2016
Global M&A value reached a record high in 2015, marking the third consecutive year of steady growth. In line with this record-setting growth, the retail and consumer sector also experienced an uptick in deal value, with 28 deals valued over $5B announced over the past two years.
Drivers behind these large transactions include broad market trends such as accelerated urbanization, demographic changes, and shifts in economic power, as well as pressure from shareholder activists. In response, retailers are recognizing the potential to leverage M&A to quickly capitalize on market opportunities.
However, the proliferation of large deals has brought increased regulatory scrutiny and companies are now looking to divestitures as an option to help appease regulators and competition committees.