100 Companies Withdraw Multiple Deals Total US$45 Billion Since Ukraine War

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100 Companies Withdraw Multiple Deals Total US$45 Billion Since Ukraine War


The impact of Russia's invasion of Ukraine also seems to have had an effect on the delay of several companies' deals. At least 100 companies worldwide have delayed or withdrawn deals totaling more than $45 billion since the invasion.

This includes initial public offerings, bonds or loans and acquisitions. US equity market deals were the hardest hit by global volatility in the first quarter as a number of companies delayed listings, while Japanese and European debt markets also experienced delays.

The disruption comes as the conflict rattles funding markets, hurting investors' appetite for risk and increasing uncertainty over growth, rising interest rates and supply chains.

"A volatile market means it's harder to execute a deal," said Marco Baldini, head of the EMEA bond syndicate at Barclays Plc. quoted from Bloomberg, Sunday (3/4).


About 50 companies have postponed their IPO plans since late February, of which nearly 30 are US listings, including companies such as Bioxytran Inc., Crown Equity Holdings Inc. and Sagimet Biosciences Inc.

The most notable delays with the amounts disclosed came from Asia and Europe. Olam International Ltd has postponed the main listing of its food unit on the London Stock Exchange, which would have been worth 13 billion pounds, equivalent to $17.1 billion.

While the Chinese conglomerate Dalian Wanda Group Co. postponed the company's Hong Kong IPO plans. shopping center unit targeting to raise about US$3 billion.

"Many plans for new offerings will likely be put on hold until the returns are subdued," said Susannah Streeter, senior market and investment analyst at Hargreaves Lansdown Plc.

Mergers and acquisitions have not gone unscathed, with about 10 deals worth more than $5 billion stalled since the war. That took global M&A down 15% in the first three months of the year to $1.02 trillion, the lowest tally since the third quarter of 2020.


Microsoft Corp. takeover. US$69 billion of video game publisher Activision Blizzard Inc. is one of the few big deals because most companies avoid big deals.

The worst declines were in Europe, where acquisitions targeting companies in the region fell 38 percent. Britain's Spectris Plc ended negotiations in March to buy Oxford Instruments Plc in a deal that would be worth £1.8 billion. Peel Hunt Ltd. said the pending deal would reduce its investment banking earnings.

The effects of the war are also being felt across global bond markets, where issuance is down 14% so far this year. Eight issuers from Europe, including the Slovak Republic, utility EnBW Energie Baden-Wuerttemberg AG and French financial firm Coface SA released more than $5 billion in bonds.

In Japan, seven companies including Sumitomo Mitsui Construction Co. Ltd., Tohoku Electric Power Co. Inc. and Orix Corp. has attracted the issuance of domestic bonds totaling around US$ 800 million.


Other debt markets, including leveraged lending and asset-backed securities, are also struggling. Even electric car giant Tesla Inc. had to delay the sale of more than $1 billion of asset-backed securities by mid-March.

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