ZURICH (MarketWatch) — The Swiss mergers and acquisitions market is expected to continue its resurgence in the second half of 2011 after the second quarter saw deal volumes go up threefold, according to consultancy Ernst & Young.
The continued economic upturn together with the surging value of the Swiss franc is expected to drive an increase in acquisitions past 2010 levels.
In the second quarter of the year, deal volume rose to 38.2 billion Swiss francs ($47.5 billion) up from CHF12.5 billion in the first quarter and significantly higher than the CHF4.6 billion achieved in the second quarter of 2010.
The total number of deals remained relatively unchanged during the period at about 225.
“Last year the total volume was $52 billion with around 460 deals. For this year, total deal volume might be able to increase to $100 billion,” said Marc Reinhardt, senior manager for mergers and acquisitions at Ernst & Young in Zurich.
The Swiss franc has risen 6.8% against the euro and 9.3% against the dollar during the second quarter of 2011, making it cheaper for Swiss companies to buy foreign companies.
“We know there are a lot of deals being helped by the Swiss franc. Companies are buying firms in the euro area and in emerging markets, and the strength of the franc is making it easier for them in some cases,” said Reinhardt.
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