2022 has seen a record first half for ASX mergers and acquisitions. Here's the lowdown

Deals have hit new heights in Australia so far this year.

Projection of two hands being shaken on a deal.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • M&A activity has spiked in 2022, setting new records in several domains
  • Capital flows from overseas are especially strong, while healthcare is a star performer
  • Fees associated with M&A activity have also surged 78% over the comparable period 

While ASX equity and credit markets deal with one of the worst starts to the year on record, it's been an entirely different story over in investment banking land.

Mergers and acquisitions (M&A) activity has nudged past a number of records in the first half of 2022, according to data compiled by Refinitiv.

Fees alone are up 78% on the prior corresponding period, and deal volume was the highest on record.

Crunching the record numbers

M&A activity blew to new heights in the first half of 2022, according to data presented in the Australia Investment Banking Review First Half 2022 from Refinitiv.

There have been at least four deals announced so far above US$5 billion with a cumulative value of $52 billion, as of June 21.

Data compiled by Refinitiv showed it was a record period for Australia on many fronts.

Overall Australian involvement announced M&A activity amounted to US$103.5 billion in the first half of 2022, a 25.4% increase compared to the first half of last year, making it the highest first-half period since records began in 1980.

The ASX healthcare sector accounted for 23% market share of the deal-making activity by value and totalled US$24.2 billion.

This was underlined by the US$22.1 billion takeover bid for Ramsay Health Care Limited (ASX: RHC) by a consortium led by private equity giant KKR.

It is currently the biggest-ever healthcare deal in Australia, Refinitiv notes.

The energy and power sector followed with 16.6% market value, booking US$17.2 billion of deals, up 26.3% from H1 FY21.

What the report calls "high technology" saw the most number of deals, but captured 13.6% of deal market share.

"Based on preliminary data, Barclays currently leads the Australian involvement announced M&A league tables, with US$36.1 billion in related deal value capturing 34.9% market share," Refinitiv also said.

Inbound M&A activity is also up 74% from last year, primarily from capital flows from the US. Meanwhile, there are several deals still pending, with only two showing completed on the data provider's slide deck.

Nevertheless, it shows there's been a spike in deal-making in Australia at the top end of town, suggesting the outlook for Australia might be quite robust, all things considered.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

A silhouette shot of two business man shake hands in a boardroom setting with light coming from full length glass windows beyond them.
Mergers & Acquisitions

Is the ASX M&A market heating up in 2025? Here's what investors should know

2025 could be one of the busiest years for Australian corporate dealmaking in over a decade.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 28% on takeover news

This stock is having a strong session on Wednesday after accepting a takeover offer.

Read more »

two men shake hands on a deal.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 23% on $1.1b takeover deal

This stock has accepted a takeover offer but it is a deep discount to its 52-week high.

Read more »

Two CEOs shaking hands on a deal.
Mergers & Acquisitions

Platinum shares drop despite L1 Capital merger agreement

These fund managers have agreed to merge their operations.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Mergers & Acquisitions

Guess which ASX 200 stock is jumping 9% on big news

Let's see why this stock is taking off this morning.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Technology Shares

Guess which ASX tech stock is racing higher on big news

This tech stock is making a key acquisition.

Read more »

Two brokers analysing stocks.
Energy Shares

Santos shares push higher on takeover update

What is the latest on this potential deal? Let's find out.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Technology Shares

Guess which ASX 300 tech stock is making a 'cutting-edge' US$28m acquisition

What is this tech stock buying? Let's find out.

Read more »