The M&A activity in the mechanical engineering sector which picked up sharply at the end of 2013 stayed high in February 2014, although transactions are going down in value. 3 M&A events for a total of $16.8 million hit the sector in February, according to the recent issue of AK&M Information Agency's monthly bulletin MERGERS AND ACQUISITIONS MARKET (no. 194).
8 deals for a total of $84 million were finalized in the sector for 2 months; only 6 transactions hit the market for the same period in 2013, but their combined value reached $183.4 million.
While the M&A tide in the sector is likely to stay high in March and April 2014, one should not overlook the worse financial performance of industrial enterprises. In 2013, the balanced financial result edged up only in the electrical equipment, electronic and optical equipment manufacture segment and looked down in two other mechanical engineering segments. The strongest decline was in the transport machine building segment (-12.8%).
Besides, the percentage of profitable companies shrank across the board in the period under review, the transport machine building being an outsider again (31.2% of such entities are loss-making). Today's weak financial capacities in the sector have only left enough opportunities for low-price transactions.
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AK&M "M&A Market"
"AK&M", 11.04.2014 11:43