How many global mega deals involved ASX 200 shares in the first half of 2022?

Deal making among ASX 200 shares helped drive a 25.4% increase in M&A activity in Australia in the first half of 2022.

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Key points

  • Two ASX 200 shares feature on the mega-deals list for H1 2022 
  • The biggest healthcare deal ever in Australia was revealed in April 
  • Shareholders stumped up to support the second biggest M&A deal of the year 

S&P/ASX 200 Index (ASX: XJO) shares feature rather prominently on the list of global mega deals in the first half of 2022.

That’s according to the latest report by financial market data provider Refinitiv, detailing global mergers and acquisitions (M&A) activities year-to-date.

The report noted that there were 58 mega deals – defined as being worth at least US$5 billion (AU$7.3 billion) – in the fist half the 2022. While that’s 23 fewer than this time last year, it’s the fourth highest level ever since Refinitiv began recording this data in 1980.

In total, global M&A activity has already reached US$2.1 trillion year-to-date. While that’s down 21% from last year worldwide, deal making among ASX 200 shares has helped drive a 25.4% increase in M&A activity in Australia so far this year. 

In fact, with US$103.5 billion of deals in the first half, this marks the highest H1 period for Aussie companies since 1980.

Which brings us to…

Which ASX 200 shares made the mega deal list?

There are seven Aussie companies with completed or pending M&A deals worth at least US$1.8 billion in H1.

But only two ASX 200 shares top the US$5 billion mega deal marker.

First, and largest, is Ramsay Health Care Limited (ASX: RHC). In a still pending deal, the $20 billion takeover offer for the global healthcare company is the biggest healthcare deal ever in Australia. 

News of the deal was confirmed on 20 April, sending the Ramsay Health Care share price rocketing.

The conditional, non-binding, indicative proposal was pitched by a consortium led by private equity giant KKR. The consortium offered $88 per share to acquire Ramsay, which was trading for $64.29 on the day that news broke.

The proposed takeover is still undergoing due diligence. Should it proceed, it will then be put up for a shareholder vote.

Moving on… 

Formed from a demerger

The second ASX 200 share making it onto the H1 US$5 billion-plus mega deal list is The Lottery Corp Ltd (ASX: TLC).

On 24 May, Lottery Corp commenced trading on the ASX for the first time after a demerger from Tabcorp Holdings Limited (ASX: TAH).

The completed transaction sees Lottery Corp take over Tabcorp’s Lotteries and Keno businesses. Management pressed ahead with the demerger with the intention of maximising shareholder value.

The newly minted ASX 200 share is down 2% since listing.

Motley Fool contributor Bernd Struben 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.

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