TECH - M&A Activity Slows In 2023 Despite Exxon Chevron Mega Deals: Brighter Prospects In 2024 | Benzinga
Global mergers and acquisitions (M&A) activity fell to the worst levels in a decade in 2023, as high interest rates increased financing costs, while concerns over an economic slowdown weighed on deal-making confidence.
Total M&A volumes fell 18% from the previous year’s $3.6 trillion to around $3 trillion, according to data from Dealogic. This was the lowest volume of deal-making since 2013 when total volumes were at $2.8 trillion.
Despite the fall in volumes, some mega deals were announced in 2023, including two in the final quarter in the energy sector.
Exxon Mobil (NYSE:XOM) agreed to acquire Pioneer (NYSE:PXD) in an all share deal worth $59.5 billion, expected to close in the first half of 2024, while rival Chevron’s (NYSE:CVX) $53 billion all-stock deal for Hess (NYSE:HES) is scheduled for an early-2024 completion.
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