‘Let us take a future car market’… Global M&A of automobile industry greatest ever in last year
Choi Yong Soon | cys@ | 2017-04-06 10:41:36
The global automobile industry``s merger and acquisition (M & A) volume last year recorded a record high for the past decade. This is due to the paradigm shift in the automobile industry, such as eco-friendly cars and self-driving cars, as the car makers are preoccupying the market.
According to a report released by Samjong KPMG on ‘Automobile Industry under M & A’ report on April 5, the number of global automobile industry M & A transactions was 598 and the turnover was USD 87.5 billion (about KRW 98,226.2 billion) last year. The number of transactions increased by 13.9% compared to the previous year, and the transaction amount increased by about 40%.
What is noteworthy is the rapid expansion of M & A between automobile, electric and electronic industries as well as the automobile industry. M & A between different industries has increased rapidly since 2014, accounting for 81.3% of the total, up from 486 last year. The automobile industry has shown particular interest in convergence with the information technology (IT), electronics, and software (SW) industries. The number of companies acquired by automobile companies was 22, 19, 18, and 13 respectively except for automobiles (112 cases), which are the same industry.
The deal was led by North American companies such as the US in the case of transaction volume. In contrast, European and Asian companies were somewhat slowed down. M & A transactions involving North American companies have tripled to USD 57.2 billion, accounting for 65% of total turnover. Among them, 34.1 % of M & A deals involving US companies accounted for more than one-third of total transactions. The transaction amounted to USD 53 billion, accounting for 60.5% of global transactions.
Samjong KPMG stated, ‘the increase in different industry M & A means that automakers recognize that a new supply or ecosystem is required in the future of the automobile market. The integration of different corporate cultures after the acquisition will be an important task for M & A success.’
By Choi Yong Soon cys@
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According to a report released by Samjong KPMG on ‘Automobile Industry under M & A’ report on April 5, the number of global automobile industry M & A transactions was 598 and the turnover was USD 87.5 billion (about KRW 98,226.2 billion) last year. The number of transactions increased by 13.9% compared to the previous year, and the transaction amount increased by about 40%.
What is noteworthy is the rapid expansion of M & A between automobile, electric and electronic industries as well as the automobile industry. M & A between different industries has increased rapidly since 2014, accounting for 81.3% of the total, up from 486 last year. The automobile industry has shown particular interest in convergence with the information technology (IT), electronics, and software (SW) industries. The number of companies acquired by automobile companies was 22, 19, 18, and 13 respectively except for automobiles (112 cases), which are the same industry.
The deal was led by North American companies such as the US in the case of transaction volume. In contrast, European and Asian companies were somewhat slowed down. M & A transactions involving North American companies have tripled to USD 57.2 billion, accounting for 65% of total turnover. Among them, 34.1 % of M & A deals involving US companies accounted for more than one-third of total transactions. The transaction amounted to USD 53 billion, accounting for 60.5% of global transactions.
Samjong KPMG stated, ‘the increase in different industry M & A means that automakers recognize that a new supply or ecosystem is required in the future of the automobile market. The integration of different corporate cultures after the acquisition will be an important task for M & A success.’
By Choi Yong Soon cys@