After a difficult 2020 that marked a reduction in M & A transactions from 1,085 (in 2019) to 830, for a transaction volume, which went down from 52.4 billion in 2019 to 34.5 billion in 2020, and with just 200 investment transactions by foreign entities (600 in 2019) for a transaction volume of 6 billion (18 in 2019), already from the first half of 2021 there has been a strong performance in the Italian market.
The first half of the year saw 522 transactions in Italy (+24.6% vs. first half 2020) for a transaction volume of around 42.4 billion euros, up to 88% compared to the same period last year (22.5 billion in the first half 2020). The major deal was the merger between Fiat Chrysler/Group PSA for 19,2 billion (about 46% of the transaction volume ). While the top 20 deals (including the FAC/PSA deal) absorb 91% (38,7 billion) of whole volume. But only 8 of them exceed 1 billion (source KPMG).
The most attractive sector are TLC and financial services, but also the Industrial (chemical, pharmaceuticals, industrial machinery) and the Consumer Market (fashion and luxury) are very active, as they account for 54% of transactions, (although they represent just 13% in terms of volume).
The return of foreign investors is also particularly significant (up 30%), to which the Draghi “effect” has undoubtedly contributed, restoring confidence and stability, as well as the outlook for the NRP, which gives hope for the start of structural reforms capable of modernizing the country an attract foreign investments.
The outlook for the second half of the year is very positive, based on current operations volume is estimated at 50 billion.
Post by Marina Alberti, STUDIO ALBERTI