Sullivan and Latham top H1 global M&A rankings while magic circle duo lead in Europe; deal volumes fall on 2010

Linklaters and Freshfields Bruckhaus Deringer have topped Mergermarket's European deal rankings for the first half of 2011 – a six-month period in which deal volumes fell across every geographic region compared with the same period in 2010.

Linklaters heads the value rankings in Europe with roles on 106 deals worth $141bn (£87.6bn), while Freshfields ranks first by volume in Europe, working on 108 deals worth $124.8bn (£77.7bn).

The rankings show both Linklaters and Freshfields significantly improving their position in the tables compared with the first half of 2010, when Linklaters came in 11th position by value and Freshfields fifth by volume.

Linklaters also takes the top spot by value and volume in the UK, climbing from 12th to first place by value. Meanwhile, the firm has improved its position in the global rankings to come fourth by value and third by volume, with roles on three of the 10 largest global deals including Volkswagen's bid for MAN and Johnson & Johnson's bid for Synthes.

Linklaters senior partner David Cheyne (pictured) said: "Overall, we seem to be getting a fair share of the market and good quality transactions, although the market generally has still not picked up to enormous levels of activity. More of our clients are doing deals and we have the right sort of clients for this market, and are confident that things will continue to improve."

Other UK firms featuring in the global rankings, in which Sullivan & Cromwell and Latham & Watkins lead by value and volume rankings respectively, include Freshfields, Allen & Overy (A&O) and Clifford Chance (CC).

However, Mergermarket research shows the extent to which deal activity is lagging around the world, even though total values were up in every region other than Africa and the Middle East.

Global deal volumes dropped by 2.7% between H1 2010 and H1 2011, with 5,684 deals compared with 5,843 deals the previous year. Meanwhile, European volumes dropped by 0.3%, UK M&A by 5.3% and US M&A by 3% – taking it to around the same level as Q3 2009.

Freshfields London managing partner Mark Rawlinson said: "It is still a pretty turgid market for M&A. There is more being thought about, even talked about, but there are some big uncertainties out there and very few bravehearts."

A&O UK corporate head Richard Browne said: "Overall the market has been OK. A lot of companies have good balance sheets with cash to spend, but they are being fairly cautious about where they spend it."

Even the Asia-Pacific region, where growing numbers of UK and international firms have been pinning their hopes of recovery and significantly expanding their presence, saw activity levels fall by 5%.

The statistics show deal value and volumes in Asia-Pacific outside Japan dropping for the second consecutive quarter, with 482 deals worth $73.2bn (£45bn) – only marginally higher than during Q1 2010. Meanwhile, in the Middle East and Africa, another region where firms are continuing to invest, deal volumes fell by nearly 18% between H1 2010 and H1 2011, while values dropped by 35.8%.

Mergermarket's rankings also include details of buyout activity, where there were 931 deals globally worth $134.7bn (£83.6bn) – representing a drop in volume of 0.1% against an increase in global deal values of 59.2%.

US duo Simpson Thacher & Bartlett and Kirkland & Ellis took the number one spots globally by value and volume respectively, with Vinge and CMS topping the equivalent European rankings and Dickson Minto and Travers Smith heading the equivalent 
UK rankings.

However, with Travers' position in the volume rankings achieved on the back of just eight deals, the rankings demonstrate the extent to which the market is still suffering from the fallout of the financial crisis.

Travers head of corporate Chris Hale said: "The low value of buyouts in the UK market can be attributed in large part to the lack of high value assets being offered for sale in what for many sectors is a difficult time.

"Obtaining debt financing is also still challenging and, although for larger deals the high yield market was open for a while, it now seems to be closing again."

Click here for a full breakdown of the global and European rankings for H1 M&A.