M&A activity increases in automotive sector
Original equipment manufacturers (OEMs) are returning to merger and acquisition (M&A) activity to achieve growth and create value, according to a survey by PricewaterhouseCoopers.
According to the survey by the financial advisor, deal value from M&As in the automotive industry increased sharply in 2009 compared to the previous year, despite a small decrease in the number of transactions.
The report, entitled Drive Value – Automotive M&A Insights, also forecasts that M&A activity will play an important role in helping vehicle and other automotive sector manufacturers to make the changes needed to ensure their short-term survival and achieve growth in the longer term.
Andy Watts, director and automotive sector expert at PricewaterhouseCoopers Midlands said: “Strategic M&A activity is expected to pick up this year because more companies are in a better position to finance discretionary deals. This could create opportunities for mid-tier suppliers and global OEMs alike.”
