Value of August mergers is slashed

4 September 2007

The sub-prime crisis in America has caused a slump in the value of the merger and acquisition market in August.

New figures released by the M&A database Zephyr show that the value of M&A deals fell from $551 billion in July to $171 billion in August.

European deals have fallen by 69 per cent from $231 billion down to $70 billion, but it is the US market that has suffered the worst.

The US market dropped 73 per cent, from $165 billion in July down to $44 billion in August.

The global market had been in a period of sustained growth until the crisis occurred.

Speaking to City AM, Zephyr commercial director, Lisa Wright, said: "There is much speculation about how long the credit crisis will last and the true extent of its impact but early indications suggest a tougher time ahead for the M&A market, at least in the short term."

There were exceptions to the general slump, with Britain seeing M&A deals rise in value.

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