New Zealand merger and acquisition activity up in Q1 despite economic headwinds - PwC

Kiwis businesses have merged more and acquired other businesses. Photo / Getty Creative

New Zealand merger and acquisition activity remained strong in the first quarter of this year, despite economic headwinds, PwC said in a market update.

Trade buyers remained significant players in the flow of deals, with 40 such deals announced in the quarter.

The consultancy said 27 deals involved domestic buyers compared to the 35 deals announced in the fourth quarter of last year.

Financial services had continued to be the most active sector since the third quarter of 2022 and has been joined by technology, media and telecommunications (TMT) this quarter.

This is the first time TMT has ranked as the most active sector since the second quarter of last year.

PwC said 54 deals were announced in the quarter, up 45 in the first quarter of 2022.

Despite some headwinds and market volatility, merger and acquisition activity has remained strong and due diligence continues to be an essential part of the deal process.

PwC corporate finance partner Regan Hoult said he expected private equity-driven transactions to come to the fore over the rest of 2023.