Global telecom M&A volume hits highest level since 2000: Dealogic report

NEW DELHI: Global mergers and acquisitions (M&A) volume in the telecom sector soared to $ 343.4 billion so far this year, the highest year-to-date total since 2000, on the back of the massive $ 130-billion Verizon Wireless transaction, says a report.

Compared to a year ago, the deal volume in the telecom sector is up almost two times. In the January-November 2012 period, there were transactions worth $ 164.4 billion.

According to the global deal tracking firm Dealogic, the year to date (January to November) telecom deal tally of $ 343.4 billion is the highest for the 11-month period since 2000, when deals worth $ 733.4 billion were announced.

Global telecom M&A volume this year so far is driven by the $ 130 billion acquisition of a 45 per cent stake in Verizon Wireless Inc by Verizon Communications Inc from Vodafone Group plc. The deal was announced on September 1.

Excluding this deal, global telecom M&A totaled $ 213.4 billion, up 30 per cent same period last year.

In terms of number of total deals, there were 843 deals so far this year, down 12 per cent compared 960 deals in 2012 in the telecom sector.

The telecom was the leading sector for global M&A volume in 2013 accounting for 14 per cent of total global M&A volume.

North America accounted for the largest share of telecom M&A volume with 55 per cent ($ 187.5 billion) in 2013, followed by Europe and North Asia with 33 per cent ($ 114.6 billion) and 4 per cent ($ 13.5 billion) respectively.

Goldman Sachs led the global telecoms M&A advisor ranking in 2013, followed by JPMorgan and Morgan Stanley, the report said.