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2021 gets off to a flying start
In our first M&A monitor of 2021 we take a deep dive into SPAC transactions, which have risen to become one of the principal drivers of global deal-making.
We calculate just how much M&A activity SPACs are responsible for, examine what underpins their explosive growth and look at what this primarily US phenomenon means for the rest of the world. In researching the trend we discovered some startling statistics, including that US SPACs have spent more on overseas targets in the past three months than in the previous 20 years combined.
As far as Q1’s deal data is concerned, the bull run that began in Q3 2020 shows no signs of slowing. M&A between January and the end of March broke the $1tn barrier for the third consecutive quarter. Q1 may eventually end up as the largest three-month period on record once the final numbers are reconciled.
The biggest deals of the year so far have involved operating companies (see table), with the top two in the transportation sector: Irish aircraft lessor Aercap’s acquisition of rival GE Capital Aviation Services for $31.2bn, and Canadian Pacific Railway’s $28.7bn buyout of Kansas City Southern.
Perhaps the most eye-catching mobility transaction however was the de-SPAC merger between Churchill Capital IV and electric vehicle startup Lucid Motors, which is the largest de-SPAC deal to date. The merger valued Lucid at $11.8bn, although once the private investment in public equity (PIPE) financing is added, the actual valuation stands at $24bn. TMT was the top sector once again, accounting for around 30 percent of global M&A activity by both value and volume.
- SPACs: the M&A craze that shows no sign of slowing
- What’s driving the SPAC boom?
- SPACs go global
- Countries compete for listings
- The GameStop effect
- China, sanctions and overseas investment
- Where have all the distressed deals gone?
- Explore Q1's top 50
- Global M&A value and volume
- M&A monitor archive
Rick van Aerssen Managing partner
Frankfurt am Main, Düsseldorf
Pervez Akhtar Partner
Kate Cooper Partner
Robert Ashworth Partner
Matthew F. Herman Partner
Dr. Natascha Doll Partner
Dr. Gunnar Schuster Partner
Frankfurt am Main
Sundeep Kapila Partner
Dr. Barbara Keil Partner
Alan Mason Managing partner
Silicon Valley, Paris
Richard Perks Partner
Hong Kong, Tokio
Teresa Ko Partner
Julian Pritchard Partner
Hanneke Rothbarth Partner
Takeshi Nakao Partner