The Globe and Mail reports in its Wednesday, Aug. 12, edition that auto-supplier deal value will rise
to a record this year as parts
makers seek size and skills to
meet demand for software that
powers autonomous driving and
hardware that boosts fuel efficiency,
said PricewaterhouseCoopers
LLP. A Bloomberg dispatch to The Globe reports that the transactions will more
than triple to about $48-billion
from $14-billion, topping
the previous high of $35-billion
in 2007, the consulting firm forecast (all figures U.S.).
Purchases of $500-million
or more are increasing the total
value, while the number of deals
may drop to 201 from 217 last
year, according to its study.
Rising United States auto sales, led by
pickups and sport utility vehicles,
are fuelling supplier mergers.
Automakers' continued
expansion in China and the production
rebound in Europe are
also contributing. Suppliers
came out of the recession lean
and, after five years of growth,
have cash to spend, PwC said.
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