The telecom sector has led the global merger and acquisition (M&A) market in terms of volumes in 2013, according to global deal tracking firm Dealogic. Telecom M&A deals were valued at $343.4 billion at end-September 2013, as compared to $164.4 billion between January and November 2012.
In 2013, the biggest deal in the global M&A market was Verizon Communications? acquisition of the Vodafone Group?s 45 per cent stake in Verizon Wireless for $130 billion. The deal was concluded in September 2013. The buyout of Vodafone?s stake in Verizon Wireless is the third largest telecom M&A deal following Vodafone?s $203 billion acquisition of Germany?s Mannesmann in 1999 and AOL?s $181 billion deal with Time Warner in 2000. Further, Dealogic terms the Verizon-Vodafone deal as the largest M&A agreement since the $111 billion spin-off of Phillip Morris International from the Altria Group in March 2008.
Other smaller M&A deals in 2013 so far include the acquisition of Massachusetts-based service provider Atlantic Tele-Network by US-based operator AT&T for $780 million; the Softbank Corporation?s acquisition of 78 per cent stake for $21.6 billion in Kansas-based wireless carrier company Sprint Nextel Corporation; and the acquisition of Scartel/Yota for $1.18 billion by Russia-based service provider MegaFon.
Dealogic states that excluding the Verizon-Vodafone deal, global telecom M&A deals worth $213.4 billion were concluded in 2013 till September, a 30 per cent growth over the previous year.
North America accounted for the largest share of telecom M&A deals in the January-September 2013 period at 55 per cent ($187.5 billion), followed by Europe and North Asia with 33 per cent ($114.6 billion) and 4 per cent ($113.5 billion) share respectively.
Goldman Sachs led the global telecom M&A adviser ranking in 2013, followed by J.P. Morgan and Morgan Stanley.
