This edition explores the automotive transactions that closed during 2007, the underlying drivers of these deals and the implications of emerging trends on future M&A activity.
The automotive M&A deal market boomed in 2007, with over 600 deals transacted. The global disclosed deal value of $57.1 billion was the highest total since the M&A boom of the late 1990's. Private Equity firms remained active and there was significant deal activity across all sectors including component suppliers and vehicle manufacturers. The magnitude of this active market was evidenced by the return of "mega-deals" including Continental AG's acquisition of Siemens VDO, Cerberus's acquisition of Chrysler and Carlyle and Onyx's acquisition of Allison Transmissions.
However, much has changed in the M&A space since 2007. The inexpensive and widely available credit that fueled deal activity no longer appears readily accessible. Companies in markets such as China and India are outgrowing their emerging market status and are becoming key global players. The US dollar, which once seemed irreversibly strong, has declined against other currencies. However, the findings of this paper suggest there are new drivers emerging. These drivers include increased deal interest from trade companies, intensified restructuring and increased cross-border investment.
Publications Search Page
