Global buyouts fall to three-year low

Global mergers and acquisitions slumped this quarter to a level not seen since the aftermath of the financial crisis amid increasing concern the economic recovery is deteriorating.

Companies have announced US$446 billion of takeovers since June 30, the smallest amount since the third quarter of 2009, according to data compiled by Bloomberg.

Chinese state-run oil company CNOOC's proposed purchase of Nexen was the only transaction to top US$10 billion in the period, the data shows.

Acquisitions are on pace to drop 15 per cent this year to US$2 trillion, the lowest in three years.

Cross-border takeovers have accounted for about half of all announced deals this year, a trend that may continue with European Aeronautic Defence and Space in talks to combine with BAE Systems.

Still, while chief executives worldwide are sitting on at least US$3.4 trillion in cash, many remain reluctant to pursue deals as Europe's sovereign-debt crisis drags on and signs grow that China's economy is slowing.

"Executives have the cash, but they don't have the conviction," said Andrew Bednar, head of advisory at Perella Weinberg Partners, a New York-based investment bank.