Issue – half-year 2024
Fewer, but larger takeovers shape M&A activity
During the first half of 2024, there were even fewer recorded deals than in the already historically weak period of the previous year: 86 transactions worth at least $50 million mark a new low compared to 98 from January to June 2023. However, the total value, at $42.5 billion, was above the previous year’s level. The reason: The average deal value rose from $393 million in 2023 to $495 million in the first half of 2024. Notably, infrastructure targets such as airports, ports, and roads achieved high prices and accounted for over a third of the total value of all transactions.
Financial investors show cautious optimism
Financial investors are once again becoming more involved in transactions in the sector. While they acted cautiously in 2023 and only contributed a good third of the total value of T&L deals, their share rose to almost half in the first half of 2024.
Digital transformation has top strategic priority
Digitalisation is a topic that is particularly relevant to the global transport and logistics industry. Companies are investing in artificial intelligence, the Internet of Things and automation to improve operational efficiency, meet market and customer demands, comply with regulatory requirements and enhance their innovation and adaptability. In short, they are making strategic investments to ensure the long-term success of their business model.
Outlook
Easing inflation and the prospect of interest rate cuts will increase the chances of a revival in M&A activity in the second half of 2024. Joint ventures and partnerships through which transport and logistics companies drive their digital transformation are likely to increase, further fuelling the ongoing issue of digital transformation.
