The rich get richer, the poor get poorer
KPMG consultants confirmed that Marx was right
The volume of international mergers, acquisitions and strategic investments grew in 1999 to a record high level of $798 billion, which is 1.5 times more than in 1998. These are the results of the annual survey of the international audit and consulting company KPMG.

The annual reviews of KPMG, a company with 100 thousand employees operating in 159 countries, enjoy well-deserved authority and attract interest among specialists. Back in 1995, the American research firm Securities Data Co. named KPMG the "#1 M&A advisor" behind investment banks and companies such as Goldman Sachs and Merrill Lynch. At the same time, KPMG published a report for 1994, in which it characterized the situation in the markets as merger mania, or “merger mania.” Particularly noted at that time was the trend towards an increase in mega-deals (amounting to over $1 billion) - from 24 in 1993 to 40 in 1994.
However, judging by the report published yesterday, these figures, which caused amazement five years ago, no longer surprise anyone today. Despite the fact that the total number of mergers and acquisitions transactions registered in the world last year practically did not increase (about 5 thousand in both 1994 and 1999), their current volumes are astounding - $798 billion. This is an increase of 47 .5% exceeds the level of the previous 1998 ($541 billion).
The United States, considered the main investor in world markets, is now noticeably inferior in expansion to Western European countries, which account for 73% of all transactions worth $582 billion (compared to $327 billion in 1998). And the UK is recognized as the most active investor among Europeans - it accounts for 30% of the total volume of transactions, or $245 billion of investments (compared to $117 billion in the previous year).
But in terms of attracting investments to the domestic market, the leadership remains precisely with the United States: $293 billion (in 1998 - $191 billion), or 37% of the total volume of transactions. This is obviously due to the rapid growth of the American economy and the strengthening of the American currency.
The most attractive industry for capital influx turned out to be the telecommunications market, into which $159 billion was invested, or 20% of all investments. In second place is the chemical industry - $93 billion. Mergers and acquisitions in gas and oil production are still active - $75 billion.
As for the geography of transactions, the markets of developing countries such as China, Russia, India, Indonesia, and Brazil turned out to be the most deprived in terms of investment last year. The volume of mergers and acquisitions in these countries fell from $35.9 billion in 1998 to $21.6 billion in 1999. KPMG experts believe that the reduction in investment in these countries was influenced by the new priorities of corporate investors, who are increasingly concerned about issues of political stability, openness of companies and stimulation of trade in these countries.

IVAN Kommersant-PETROV

Newspaper "Kommersant" No. 27 dated 02/18/2000, p. 7