[Edaily Marketin, Reporter YunJi Kim ] While large-scale deals have disappeared from the domestic mergers and acquisitions (M&A) market, data shows that transaction volumes in global markets have also declined significantly in the third quarter of this year. However, regional disparities emerged, with U.S.-based private equity fund (PEF) managers leading a series of large-scale acquisitions of listed companies in the U.K. and Australia. In particular, the value of M&A transactions in the Asia-Pacific region increased year-over-year, showing a trend that contrasted with that of the domestic market.

According to figures recently released by the London Stock Exchange Group (LSEG), the value of global M&A transactions in the third quarter of this year totaled $993 billion (approximately 1,316.718 trillion won), a 41% decrease from the previous quarter. This marks the first time since the second quarter of last year that quarterly transaction volume has fallen below $1 trillion. The number of mega-deals worth over $10 billion also dropped to 10, the lowest since the fourth quarter of 2024.

Although the global M&A market contracted in the third quarter of this year, some acquisitions worth trillions of won continued, led by U.S.-based private equity firms (PEFs). While the overall transaction volume decreased due to a concentration of large deals in the previous second quarter and increased financing costs resulting from rising market interest rates, there was a series of acquisitions of publicly listed companies by foreign capital in countries such as the United Kingdom and Australia.

A prime example is the acquisition of the British low-cost airline easyJet by U.S.-based Apollo Global Management. In August, Apollo agreed to acquire easyJet for approximately 5.7 billion pounds (about 10.07 trillion won). Although U.S. investment firm Castle Lake had previously made a bid for the company, Apollo won the competition by offering a higher price. Once the transaction is finalized, easyJet is scheduled to be delisted from the London Stock Exchange.

U.S.-based KKR has embarked on a series of major acquisitions in Ireland and Australia. Following its agreement last July to form a consortium with Energy Capital Partners (ECP) to acquire the Irish energy distribution company DCC for 5.75 billion pounds (approximately 10.1846 trillion won), in August, it also participated in a deal to acquire the Australian insurance brokerage firm Steadfast for 7.7 billion Australian dollars (approximately 7.1587 trillion won).

In Australia, where corporate valuations are relatively low compared to those in the U.S., acquisition deals by Canadian and European asset managers continued. In September, Canada’s Brookfield agreed to acquire Australian plumbing and water supply equipment company Reliance Worldwide for approximately $2.9 billion (approximately 3.8433 trillion won). In addition, Swedish private equity firm EQT submitted a bid in August to acquire local waste management company Cleanaway Waste Management for 9.4 billion Australian dollars (approximately 8.7297 trillion won) and secured exclusive due diligence rights.

Amid a series of major acquisitions in Australia, the value of M&A transactions in the Asia-Pacific region also increased. According to LSEG, the value of M&A transactions in the Asia-Pacific region in the third quarter of this year reached $242 billion (approximately 321 trillion won), up 8% from the previous quarter and 36% from the same period last year. Regional disparities were pronounced, as transaction volumes declined in the U.S. and Europe during the same period.

Although the total transaction volume in the global market has declined, some observers believe it is too early to view this as a full-fledged downturn. They note that the decline in the third quarter appeared relatively sharp simply because large deals were concentrated in the previous second quarter. Global law firm Clifford Chance told a foreign media outlet, “The decline in third-quarter transactions is a normalization process following the exceptional increase in the previous quarter,” adding, “Strategic investors are still pursuing acquisitions in line with their existing business objectives.”