The value of merger and acquisition deals among global engineering and construction firms rose to $13.03 billion in the third quarter of 2010, says financial services firm PricewaterhouseCoopers, New York City. The figure was up from $11.43 billion in the previous quarter, even though the number of transactions tracked dropped to 35 from 43. But the firm claims the value of “megadeals”—those worth at least $1 billion—more than doubled in the quarter, to $7.2 billion from $3.55 billion . Kent Goetjen, the firm’s E&C sector leader, credits the megadeal increase partly to “reduced capital constraints and low activity in 2009.”
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.