The value of global merger and acquisitions (M&A) deals rose 11.7% year-on-year to $1.22 trillion in the first half of 2024, S&P Global said in a report.

This increase came despite a 12.9% drop in deals, totaling 19,415 during the period.

M&A activity has yet to fully rebound from the slowdown that began in 2022, triggered by the global rate-hiking cycle. However, dealmakers are willing to engage in large transactions.

The total value of global deals recorded its third straight quarter of year-on-year growth, driven by more than $10 billion M&A deals outside the US. 

Europe saw a significant boost, with the total value of M&A announcements increasing by 65.4% quarter-on-quarter and 25.4% year-on-year in Q2 2024, reaching $182.87 billion.

In contrast, global initial public offerings (IPOs) saw a decline. The first six months of 2024 recorded 616 global IPOs, down from 674 in H1 2023 and 819 in H1 2022.

A handful of large transactions served as a bright spot for M&A and IPO activity in the second quarter, said Joe Mantone, lead author of the report at S&P Global Market Intelligence. 

Clarity around the political landscape and sustained rate-cutting cycle will help to create optimism for M&A and initial public offerings (IPOs) heading into 2025, he added.

(Editing by Seban Scaria; seban.scaria@lseg.com)