Michael Gestrin

International M&A investment has shown resilience in the face of recent economic turmoil, including the unfolding sovereign debt crisis in Europe and persistent economic weakness in the

United States. 

International M&A investment in 2011 reached $822 billion as at 21 October. If this pace can be sustained, international M&A will top $100 billion by the end of the year, a 32% increase over 2010.

This would match the third highest level ever reached in 2006. Even if M&A activity were to come to a stop in Q4, 2011 levels will still be 7% higher than those reached in 2010.

Most international investment continues to originate from either North America or Western Europe. However, the emerging markets have become important new sources of international investment in recent years. 

China (including Hong Kong) in particular has become a major international investor, ranking as the fourth largest source of international M&A in 2011, with 7% of the world total (figure 2). In 2010 it ranked second with 10%.