UnknownIn contrast to optimistic expectations, the number of M&A deals in Australia in 2015-2016 is expected to continue on a sharp decline, according to the seventh annual Herbert Smith Freehills Australian Public M&A Report.

According to the report, the shift seen in the second half of 2014-15 has continued into the first quarter of 2015-16

Some 55 deals were announced in 2014-15, down on the previous record low of 59 (registered in 2012-13) and significantly lower than the 77 announced in 2013-14. C

Paul Branston, the co-author of the report, said that the industry had been taken by surprise, as they had expected last year’s activity to continue.

General volatility, as well as uncertainty from China and Europe may have influenced this year’s market, he said. However, the year ended well, he added:

“We saw a shift in momentum in the second half of 2014-15, with all of the mega deals being announced in this period.” So far, the current year has maintained the momentum of the second half of 2014-15.

Deal value was Australian $28 billion, down on the $43 billion n registered for 2013-14, but up on the $12 billion recorded in 2012-13.

Source: Lawyers Weekly