The year 2023, in the sphere of cross-border mergers, acquisitions, and investments, was marked by lows reaching a nadir unseen in the previous five years. However, this downfall is not to be regarded as a blanket state across all sectors. Specifically, an unexpected buoyancy was observed in two target industries— basic materials and utilities—where considerable hikes in deal volume were recorded. Bloomberg Law provides a detailed analysis of this mixed landscape of cross-border dealmaking in 2023.
Defying the general trend, the basic materials sector, which comprises industries like mining, chemicals, and steel, observed a steep 74% increase in cross-border deals. The volume of such deals leapt from $58 billion in 2022 to a whopping $101 billion the following year.
Simultaneously, the utilities industry — comprising electric, gas, water entities — also fared well. Deal volume in this industry experienced a significant 90% rise, jumping from $41 billion in 2022 to $78 billion in 2023.
However, while these estimates paint a rosier picture for certain sectors, overall, the global cross-border deal volume in 2023 was at its lowest point in a span of at least five years.
These findings seem to mark out the utilities sector as a potential hotspot for deal activity in the foreseeable future. Nevertheless, legal professionals engrossed in cross-border dealmaking should examine these narratives more closely, given the ebb and flow of global economies and the continuous evolving landscape of global commerce.