TOTAL MARKET SIZING OF MERGERS & ACQUISITIONS

AUSTRALIA
M&A Activity
Market

For the 2017 financial year ending 30 June 2017 (FY 2017), the
Australian M&A market saw strong midmarket activity. However,
overall M&A levels remained subdued. The total value of all announced
deals (AUD24.3 billion for FY 2017) was down on the previous financial
year (AUD33.2 billion for FY 2016). However, there was an overall
increase in announced public M&A deals involving ASX-listed Australian
targets (from 50 in FY 2016 to 59 in FY 2017).
M&A Trends
• Over 80% of total deal value from FY 2017 can be attributed to the year's ten largest transactions. There were only four
deals announced with a value of more than AUD1 billion, with the two largest deals (DUET Group and Tatts Group
takeovers) accounting for more than half of the total value of all deals announced in FY 2017.
• Despite decreased interest from Chinese bidders in response to the tightening of regulatory controls, 44% of bidders in FY
2017 came from outside of Australia and New Zealand, contributing AUD12.3 billion to the total deal value.
• The industrials and utilities sectors contributed AUD9.44 billion to the overall deal value in FY 2017. This is primarily due to
the Cheung Kong consortium acquisition of the DUET Group (energy utilities). However, the total volume of deals in this
sector showed a significant overall decline from 30% in FY 2016 to 12% in FY 2017. 
• The software and services sector featured strongly in FY 2017 in terms of deal volume. Tabcorp's acquisition of Tatts Group
played a significant role in increasing representation of the consumer sector in FY 2017. This sector accounted for 14% of
deal volume in FY 2017 and contributed just over AUD1 billion in total deal value. 
• Low levels of M&A in the energy and resources sectors continued in FY 2017, representing just 3% of total deal value. This
shows a steady decline in public M&A in this sector, down on the low levels seen in FY 2016.
• FY 2017 saw a decline in the level of competition in Australian public M&A, with only three deals attracting multiple
bidders. This was a decline compared with FY 2016 levels.
Corporate deals by sector M&A – Annual trends
Top 10 deals
Top 10 deals
Top 10 deals
Top 10 deals
Top 10 deals
References
• https://www.grantthornton.com.au/globalassets/1.-member-firms/au
stralian-website/services/advisory/pdfs/gtal_2019_dealtracker_report
.pdf
• https://content.next.westlaw.com/Document/I2ef127e81ed511e3857
8f7ccc38dcbee/View/FullText.html?contextData=(sc.Default)&transiti
onType=Default&firstPage=true&bhcp=1