Freshfields heads 2009 deal rankings as Euro M&A manages revival in Q4

Hopes rise of deal revival but M&A stats show corporate activity in 2009 fell to six-year low

Freshfields Bruckhaus Deringer has topped Mergermarket's European deal rankings for 2009 - a year that saw activity levels fall back to 2003 levels.

The magic circle firm headed the European rankings by value and volume after advising on 169 deals worth $274.6bn (£170bn). The tally, which included roles on five of the 10 largest European deals of 2009, saw the firm narrowly knock last year's leader - Linklaters - into second place by both value and volume. Both firms advised on the largest European deal of the year - HM Treasury's $41.9bn (£26bn) stake in Royal Bank of Scotland.

Mergermarket's research shows a marked uptake in activity in the fourth quarter of 2009 with some 916 European deals worth $203.3bn (£126bn) compared with 830 deals worth $77.3bn (£48bn) in Q3.

Ed Braham (pictured), global head of corporate at Freshfields, commented: "We saw a stronger flow of new deals at the end of last year and my instinct is to be optimistic for the first half of 2010. However, the deals could take some time to reach signing and there is the risk of a market shock."

Despite the increase in activity seen in the last quarter of 2009, looking at the year as a whole shows a gloomy picture. European M&A activity stood at 3,524 deals worth $473.7bn (£293bn) in 2009, down from 5,456 deals worth $1,048.1bn (£649bn) in 2008. The figures are broadly similar to 2003 when there were 3,303 deals worth $487.4bn (£302bn).

Linklaters corporate head David Barnes said: "I think 2009 will prove to be the low point of M&A; it should pick up gradually from here on in." Tim Emmerson, Sullivan & Cromwell London M&A partner, added: "At an emotional level people who have been sitting on their hands for a long time realise that they need to get out there and start doing deals and using the pools of acquisition finance which are available from the better capitalised banks."

Asia-Pacific stood out as the strongest performer of the year, with activity matching 2007 levels. In 2009 the region saw 2,208 deals totalling $419.3bn (£260bn).

     Click here for full details of the 2009 year end rankings.