29 January 2025
Fewer mergers and acquisitions on the Swiss M&A market
- 464 mergers and acquisitions with Swiss involvement and a deal volume of around USD 115 billion in 2024 (previous year: 484 transactions amounting to USD 72 billion)
- Most active sectors: Industrial Markets, Telecommunications, Media and Technology as well as Pharmaceuticals and Life Sciences
- Largest transaction: Galderma’s IPO worth a total of roughly USD 21.6 billion
- More transactions with private equity firm involvement than in the previous year, but level still remains low
- Slight uptick in M&A activity expected in 2025; complexity of IT system integration and spin-off projects continues to rise
At 464 mergers and acquisitions, 4 percent fewer transactions were conducted compared to 2023. One thing that stands out is the sharp increase in deal volume, which rose by more than fifty percent – from USD 72 billion in 2023 to USD 115 billion in 2024. “Compared to the strong post-pandemic years, economic uncertainties put another slight damper on M&A activities as both companies and financial investors were strongly focused on their own operations,” explains Timo Knak, Head of Deal Advisory at KPMG. KPMG Deal Advisory anticipates a slight increase in M&A activities in the current year, particularly with respect to private equity and further carve-outs at larger corporations.
Industrial Markets the most active M&A market
As in the previous year, the highest level of M&A market activity was reported in Industrial Markets. Nearly one in five transactions (84) was attributable to this sector and – at around USD 24 billion – the transaction volume was roughly four times higher compared to the previous year. With 75 transactions and a deal volume of around USD 26 billion, the Telecommunications, Media and Technology (TMT) sector is the second most active sector on the M&A market.
As in the previous two years, the Pharmaceuticals and Life Sciences sector came in third with 59 deals and a volume of nearly USD 41 billion. While the proportion of mergers and acquisitions with private equity involvement saw another slight increase over the previous year, from 23 to 26 percent, it is still lower than the long-term average of around one-third of all transactions.
Galderma’s IPO the most prominent Swiss M&A transaction
The five largest transactions accounted for a deal volume of just under USD 66 billion in 2024, some 57 percent of the total deal volume. Last year’s most prominent transaction was Galderma’s IPO – a total value of around USD 21.6 billion made it one of Europe’s largest IPOs in the past few years.
The second-largest transaction was an all-stock acquisition of US packaging manufacturer Berry Global by Amcor, a Swiss competitor, for around USD 17.7 billion. Third place goes to Sunrise: following a four-year absence, the Swiss telecommunications company was re-listed on the Swiss stock exchange with a total valuation of USD 10.2 billion. Swisscom’s takeover of Vodafone Italia for roughly USD 8.7 billion was another head-turning transaction in the TMT sector.
Table: Five largest transactions with Swiss involvement in 2024
Swiss companies make acquisitions abroad
Swiss companies once again acquired considerably more of their foreign counterparts in the past year than vice versa. They purchased foreign companies or parts of foreign companies in 221 cases (nearly half of all transactions), whereas foreign companies only acquired 107 Swiss firms or stakes in Swiss firms (23 percent of the transactions).
“Thanks to their high liquidity and robust balance sheets, Swiss companies are very well positioned for mergers and acquisitions and have been highly active in acquiring foreign companies for years,” explains Timo Knak.
At 64 deals, domestic transactions (Swiss/Swiss) accounted for 14 percent of all transactions. Just under 16 percent of all transactions were attributable to foreign deals with Swiss vendors (72 deals).
Slight uptick in M&A activity expected in 2025
KPMG expects the current year to bring a continuation in the trend toward value-oriented transactions as well as a slight increase in M&A activity, particularly with an eye to private equity involvement. The complexity of mergers, acquisitions and spin-offs will continue to rise, not least due to the growing importance of artificial intelligence. “Companies’ IT systems are becoming increasingly complex and that complexity directly impacts M&A processes,” says Knak. “Managing the IT-related aspects of an integration or spin-off process is therefore an essential part of ensuring a transaction’s success.”
