Global M&A activity tumbled to its lowest level in more than a decade in the second quarter, according to data provider Refinitiv, as companies gave up on expansion plans to focus on protecting their balance sheets and employees in the wake of the coronavirus outbreak, Reuters reported. Chief executives were reluctant to explore transformative deals without more certainty about the financial outlook of their companies, deal advisers said. Instead, they seized on favorable financing conditions to raise capital by selling stock and borrowing cheaply, driving equity and debt issuance to record highs. “It was the quarter for capital market activity. Companies are making sure their balance sheets are strong and durable for what comes next,” said Michael Carr, global M&A co-head at Goldman Sachs Group Inc. Global M&A totaled $485.3 billion in the second quarter, down 55% from a year ago and its lowest since the third quarter of 2009, according to Refinitiv. This was based on 8,272 deals, the lowest quarterly number since the third quarter of 2004.
