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COVID-19 takes heavy toll on European dealmaking

The European Commission has forecast an 8.7% contraction in the region's economy for 2020. Read the full European Deal Drivers report here. 

The headwinds caused by the COVID-19 pandemic has caused aggregate deal value in H1 2020 to fall to €266.6bn, down 28.1% from H1 2019. Deal volumes collapsed to 2,619, a fall of almost 35% from the more than 4,000 transactions announced in both H1 2019 and H2 2019. 

Several industries suffered severe dips in deal activity, with the consumer and leisure sectors among the hardest hit. By contract, aggregate deal value in the financial services and industrials & chemicals spaces actually recorded an increase from H1 2019 figures. 

Dealmakers can expect the TMT sector to see the most M&A activity in the EMEA region, reflecing the industry's buoyancy amid the ongoing coronavrius crisis. 

The UK & Ireland, typically the EMEA leader in terms of TMT activity, was surpassed in H1 by Central Eastern Europe. The DACH region stands out for its concentration of companies for sale in the industrials & chemicals sector. 

Another hotspot highlights the bevy of consumer companies coming to market in Italy, one of the countries most severely impacted by the coronavirus outbreak. With any luck, an upswing in dealmakers' confidence will see Italian M&A heat up in H2. 

Download the full report. 

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