Companies in the transport and distribution sector are increasingly eyeing strategic mergers and acquisitions. This is according to international research by KPMG. Companies are said to be increasingly willing to spend large sums of money on transactions that may contribute to achieving their strategic goals.
This is partly reflected in an increase in the amount of money involved in mergers. This rose 6 per cent last year to a total value of $58.9 billion. The number of transactions, meanwhile, fell from 929 to 899.
Market is on the rise again this year
"This is a sign that the mergers and acquisitions market in the sector is no longer predominantly 'distressed' and that it is less and less often about divesting ailing parts," says Herman van Meel, partner at KPMG and segment leader Transport & Distribution. According to Van Meel, this trend is going to continue this year as well. This manifests itself in large transactions aimed at achieving non-organic growth. The total value of transactions will therefore come out at more than USD 60 billion, KPMG expects.
Private parties dominate the market
A major role is played by private investment. Consider FedEx's bid for TNT Express. "FedEx is willing to pay a premium on top of the share price. This suggests that FedEx sees important synergies in this deal." Governments are unable to contribute to this. "Governments lack the financial flexibility to invest. That is why private parties are currently dominating the market."
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