Uncertainty dogs consumer M&As

Advanced Search

The story appears on

Page A10

July 11, 2017

GET this page in PDF

Free for subscribers

View shopping cart

Uncertainty dogs consumer M&As

By Ding Yining | 00:01 UTC+8 July 11, 2017 |

Print Edition

MERGERS and acquisitions among the top 50 fast moving consumer goods giants fell sharply to US$50 billion in 2016 from US$226 billion a year earlier due to uncertainties in the global market, a new study shows.

The decline comes after a bumper year for M&As in 2015 and is the lowest level since 2011 — and less than half the 10-year average, according to the joint report by OC&C Strategy Consultants and The Grocer released yesterday.

The sector has been dragged down by political uncertainty across Europe and America.

The top 50 consumer companies saw growth slide to 2.6 percent from 3.4 percent a year ago while revenue growth also fell for the first time since the report began 15 years ago.

Net profit growth was up 18.8 percent from 16.6 percent in the previous year, although most of this was due to exceptional gains.

“Political uncertainty has undoubtedly played a significant part in this,” said Will Hayllar, a partner at OC&C Strategy Consultants. In the first five months this year, 10 deals were announced, worth a combined US$87 billion.

This suggests a mild recovery. Consumer goods players have been seeking acquisitions to leverage growth in niche categories and to consolidate existing operations, under pressure to boost margins.

“The landscape continues to be challenging, but there are winning strategies out there such as by focusing on e-commerce, premiumization and tapping into consumer trends, such as healthy living,” Hayllat said.

Finance

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Uncertainty dogs consumer M&As

Email this to your friend