Run of big-ticket deals sees M&A value rise globally but bid activity drifts down in Q1

Clifford Chance (CC) has topped Mergermarket's European deal rankings by volume for the first three months of 2011 – a quarter that saw deal volumes fall both globally and in Europe.

The magic circle law firm jumped from sixth place in Europe at Q1 2010 to first place in 2011, with roles on 43 deals worth $34.6bn (£21.3bn). These include transactions such as Criteria CaixaCorp's takeover of the banking business of majority owner La Caixa, worth around $13bn (£8bn).

The haul saw CC push Allen & Overy (A&O) into second place by volume in Europe, with roles on 40 deals worth $36.6bn (£22.5bn). However, A&O topped the UK league tables by both value and volume thanks to roles on 18 deals worth $28.4bn (£17.5bn), including Pennsylvania Power and Light's (PPL's) acquisition of E.ON's UK power networks for $6.5bn (£4bn) – a transaction on which A&O worked alongside Simpson Thacher & Bartlett for PPL.

However, while the quarter contained a number of high-value transactions – pushing total deal values up compared to the same period in 2010, particularly in the UK and US – overall deal volumes were generally down when comparing Q1 2011 with both the same period in 2010 and the last three months of 2010.

Only the UK bucked the trend, with deal activity flat compared with the same period in 2010 and up by nearly 4% on Q4 2010.

A&O global co-head of corporate Sietze Hepkema said: "We had a good Q1 with a couple of really big deals but we still don't believe that the market has fully recovered: activity is still patchy and unpredictable. Volumes are also down in Asia and the Middle East and there is more competition for work there. What you can say, though, is that deals are sizeable right now so a couple of them immediately make a difference."

CC London corporate head Simon Tinkler (pictured) added: "Many of the big deals we acted on last quarter were indicative of the busiest sectors – investment services, oil and gas and energy, for example – but it's a fragile market. Our view is that the differentiation between the magic circle and those below is going to get bigger because of the increasing need for global advice and a global client base."

Elsewhere, Mergermarket's statistics show Wachtell Lipton Rosen & Katz topping the global ranking by value, with Latham & Watkins holding the top spot by volume.

Meanwhile, national firm Eversheds significantly improved its position in the UK and European rankings by volume, Simpson Thacher topped the European rankings by value and CC topped the European buyout rankings by value and volume.

Simpson Thacher and Kirkland & Ellis topped the global buyout rankings by value and volume respectively, with Linklaters and Travers Smith topping the respective UK rankings.

[asset_library_tag 2784,Click here] for more details of the top five firms for Euro M&A in Q1 2011.