New OECD data and analysis on international mergers and acquisitions shows that international M&A investment in 2010 is on track to match 2009 levels, ending the sharp declines in international investment activity in 2008 (-21%) and 2009 (-53%).
Investments reached $300 billion in the first half of 2010, similar to 2009, and could signal that the bottom of the cycle has been reached, the OECD report says.
Private sector international M&A investment is poised to increase almost 20% in 2010, marking the first increase since the start of the crisis in 2008.
If these forecasts hold true, international M&A investment will have declined 64% during the global economic crisis from a peak of $1.7 trillion in 2007. The decline is significant, but still less than the 72% decline between 2001-2003 after the cot.com bubble burst. This suggests international investment was more resilient during the current economic crisis.
to Daily News