Global deal value fell below $3 trillion for the first time since ‎‎2013‎

The value of deals globally fell below $3 trillion for the first time since 2013 this year.

According to CNBC, this decline was caused by a combination of high interest rates and escalating geopolitical tensions, as deal makers found themselves forced to deal with multiple fronts and at several levels.

Data from the London Stock Exchange Group revealed that the total value of transactions concluded this year amounted to $2.9 trillion, which represents a decline of about 17% from 2022 levels.

This is the first time since the global financial crisis that the value of deals declined by more than 10% over two years in a row, while the largest decline came from Europe, which witnessed an annual decline of 28%, while deals fell by 25% in the Asian region. The Pacific Ocean, and about 6% in America

Mergers and acquisitions have entered a downward trend since the Corona pandemic, and rapid interest rate increases have calmed the private equity market, and a pair of merger deals in the US energy sector by ExxonMobil and Chevron, with a value exceeding $50 billion each, has led to an increase in… Rates during the last months of the year

The value of deals increased by 28% in the last quarter of this year. However, the war in Gaza that began in October halted the recovery of deals on a larger scale.

Deals from financial sponsors fell 30% over the past year to $562 billion, while deal makers expect private equity groups to be exposed to more pressure to conclude deals next year, after a long-term slowdown in activity.