Mergers and Acquisitions on Both Sides of the Pond: A Boom but Tightened Regulations
By Christoph Ruhkamp, Frankfurt
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Germany emerged as a significant player in global mergers and acquisitions (M&A) in 2024, with big names raking in the dough. As reported by Goldman Sachs, German companies were involved in hefty transactions amounting to $150 billion, nearly doubling the paltry previous year's volume.
In the limelight, you had the Abu Dhabi National Oil Company's eye-catching $18 billion bid for Covestro, a major cross-border deal. Moreover, US-Europe M&A activity accounted for a whopping 44% of cross-regional volumes. That was thanks to mega deals like International Paper Co.'s $9.8 billion takeover of DS Smith, a UK-based firm, reinforcing the broader European M&A wave, even though the deal itself was UK-focused.
The Goldman Sachs M&A Outlook for 2025 points to a global resurgence in cross-border deals, with activity spreading across EMEA (Europe, Middle East, Africa) and APAC. While exact figures for Germany's contribution to regional growth aren't available, its involvement in landmark deals undeniably showcases active participation in the upward trend.
It's worth noting that Merck KGaA, a German-based company, announced its $3.4 billion acquisition of SpringWorks Therapeutics, a US-based biopharmaceutical firm, shortly after the period covered by the Goldman Sachs report. This deal underscores continued cross-border activity, even beyond the timeframe of the report.
However, news of this M&A boom is tempered by intensified scrutiny of subsidies. With growing concerns over state aid and market distortions, the spotlight on subsidy investigations is shining brighter.
In the end, while German involvement in cross-border deals surged in 2024, it's unclear whether the country's total domestic or outbound M&A volumes increased substantially year over year. The focus seems to be on strategic participation in high-value international deals rather than quantifiable aggregate growth.
- Goldman Sachs predicted a global resurgence in cross-border mergers and acquisitions (M&A) in 2025, with a sharp increase in activities across EMEA and APAC regions.
- In 2024, Germany saw significant participation in the M&A boom, with major players like Merck KGaA involved in deals worth billions, such as its $3.4 billion acquisition of SpringWorks Therapeutics.
- Despite the increase in M&A activity, the focus seems to be more on strategic participation in high-value international deals rather than substantial year-over-year growth in total domestic or outbound M&A volumes.
- Apart from large-scale industry deals like the $18 billion bid for Covestro by the Abu Dhabi National Oil Company, US-Europe M&A activity accounted for 44% of cross-regional volumes in 2024.
