A report released on Thursday by PwC, an international accounting and consulting firm, showed that the global automotive industry merger case more than doubled in size in 2018, reaching a record high of $97.5 billion, driven mainly by mega-mergers and acquisitions in the automotive parts sector.
Five mergers and acquisitions totaling $42 billion accounted for 43% of last year's mergers and acquisitions, according to the report.
PricewaterhouseCoopers pointed out that cross-border mergers and acquisitions in the automotive industry slowed down in 2018 due to increased trade tensions and less emphasis on geographical expansion.
Twenty mergers and acquisitions worth more than $1 billion are the highest on record for PricewaterhouseCoopers, more than double the average in the previous three years.
The report points out that despite the adverse macroeconomic factors, the availability of capital and the pace of change in the automotive industry should create a strong M&A environment this year.
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