Topic: Ma and joint ventures

M&A in the technology, media and telecommunications (TMT) sector has remained relatively subdued so far this year, with many of the factors identified in our Spring M&A Outlook having persisted into 2024. However, while dealmaking may not have got off to a racing start, the remainder of the year shows signs of improving market conditions with the potential to prompt increased activity levels during the coming months.

Earlier this year we looked at trends in M&A investment in the technology sector, highlighting the TMT sector was the best performing sector in 2023 in terms of deal value and volume. The sector has remained fairly subdued this year, but are there signs this could be changing? We explore with our colleagues in the UK, Europe and China the outlook for the sector in their regions, and the impact of regulation on M&A investment in the tech sector.

Following a surge in M&A activity in 2021 and the first quarter of 2022, deal making in the Tech sector slowed significantly through the remainder of 2022.

The European Union’s (EU’s) proposed new competition law regime, the Anti-Subsidy Regulation, seems on track to be finalised by mid-2022 and to apply from early 2023. The Anti-Subsidy Regulation was formally proposed in May 2021 but closely tracks a 2020 white paper. It will create mandatory new M&A notification and approval requirements based on a broad new group-wide, global financial metric, “financial contributions,” starting with multinationals’ 2020 financial years.

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