M&A activity in New Zealand remained strong throughout 2021, closing out the year with record deal numbers.

Despite the global pandemic, the fourth quarter of 2021 saw a flurry of M&A activity in New Zealand, highlighting the trends we identified in our October 2021 Expanding Horizons M&A Report.

By the end of 2021, New Zealand M&A deal volumes rose 55% with a total of 124 deals, compared with 80 in 2020, according to new analysis.[1]

Meanwhile M&A deal values also saw a massive year-on-year boost, with a 397% increase in 2021, totalling US$13.8billion (NZ$20.4billion).

Our analysis shows that New Zealand’s closed borders and other Covid-19 related restrictions didn’t put a damper on offshore investors, and there was a continued trend of high deal volumes in key sectors like technology and health.

Significant inbound investment in Q4 2021 included the merger of Orcon and 2degrees by Macquarie Asset Management/ Assure Super, the sale of Heritage Lifecare’s property portfolio to Centuria, and the acquisition of Weta Digital by Unity Software.

Key findings from our analysis, include:

  • A quarter of all 2021 deals (24.2 per cent) were in the technology sector, equating to 30 deals;

  • Overall deal volume in 2021 was 124 deals, 55 per cent more than 2020;

  • Overall deal value in 2021 was US$13.8 billion (NZ$20.4 billion) a 397 per cent increase on 2020;

  • Offshore deal volume in 2021 totalled 68 deals, a 55 per cent YOY increase;

  • Domestic deal volume in 2021 totalled 56 deals, equating to a 56 per cent increase from 2020;

  • Offshore deal value in 2021 was US$9.4 billion (NZ$13.9 billion) a 399 per cent YOY increase;

  • Domestic deal value in 2021 was US$4.5 billion (NZ$6.6 billion) a 392 per cent increase on 2020.

New Zealand is seen as a location with strong investment fundamentals and we predict that it will continue to be viewed globally as an attractive investment destination in 2022.

  1. Deal information sourced from MergerMarket, as at 24 January 2022. Criteria: announced deals with a New Zealand target.



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