Facing unprecedented industry transformation and emerging competitive threats, many telecommunications companies are turning to mergers and acquisitions to add new capabilities and evolve their businesses for the next era. At the same time, in the biggest industry reset since deregulation, the integrated telco is giving way to more disaggregated, narrowly focused business models. We’re tracking telecom M&A activity around the world, and each quarter, we’ll publish the latest developments in this dashboard.
Here are some of the key takeaways through the third quarter of the year’s deals:
- Telecom M&A momentum has slowed through the first three quarters of 2022 compared with the same period a year ago, with deal values declining 40% year over year from $115 billion to just $69 billion (see panel 1). Regionally, Europe, the Middle East, and Africa continues to dominate the majority of global transaction value, with nearly 60% so far in 2022, followed by Asia-Pacific at nearly 25%.
- Infrastructure deals made up about 55% of global deal value (see panel 2), a number that jumped considerably as these deals accounted for a whopping 91% of total deal value in the third quarter alone, primarily due to a spate of tower deals totaling around $20 billion. Those numbers also come with an important caveat, as 2022 has seen a larger number of transactions without disclosed deal values compared with a year ago, particularly in the Americas and in infrastructure, which likely makes the overall year-over-year decline in deal values look larger than it actually was.
- The largest announced deal of 2022 remains an in-country scale transaction (see panel 1); Orange and MásMóvil announced earlier this year that they intend to merge their Spanish businesses to expand their fiber-to-the-home businesses and 5G networks.
- In-country M&A accounts for around half of total deal value since 2016 (see panel 3), mainly because of growth in scale deals.