A tilt toward the cross-border deal: mergers and acquisitions.

• Position: Mergers and Acquisitions

Cross-border mergers and acquisitions activity set something of a milestone during the third quarter of 1990. For the first time in history, international deals accounted for a majority of the disclosed prices for all M&A activity in a single quarter.

On an overall basis, third-quarter activity reflected the slowing pace of dealmaking. According to Mergers & Acquisition's [R] magazine, there were 810 completed mergers, acquisitions, and divestitures valued at $42.8 billion for the 378 deals in which prices were announced. In the 1989 third quarter, there were 815 completions valued at $52.8 billion for the 443 transactions disclosing price.

But the tilt toward cross-border dealmaking, which is expected to be one of the leading M&A forces during the 1990s, was clearly evident. There were 112 foreign acquisitions in the U.S., valued at $14.7 billion, and 57 American acquisitions abroad, with a value of $7.5 billion. Their combined value of $22.2 billion was about 52% of the total reported dollar value.

Transactions involving only American companies on both the buy and sell sides totaled 641 with a value of $20.7 billion in the third quarter.

International dealmaking volume was swelled by a number of megadeals that reflected the increased commitments to global markets being made by major companies. The largest deal of the quarter was Philip Morris Cos. Inc.'s acquisition of Switzerland-based coffee and chocolate giant Jacobs Suchard Ltd. for $3.8 billion.

Major inbound deals included the purchase of control of Rorer Group Inc. by France's Rhone-Poulenc SA for $3.3 billion; the $2.2 billion acquisition of Motel 6 LP by Accor SA, also of France; and Swiss-based Roche Holding Ltd.'s purchase of Genentech Inc. for $2 billion.

Overall activity in the third quarter compared with an upward revised total in the second quarter of 958 merger, acquisition, and divestiture completions valued at $28.6 billion for the 412 transactions disclosing price.

Corporate divestitures totaled 267, and had a value of $13.8 billion in the latest quarter, with prices revealed for 101 deals. In the prior quarter there was a greater number of divestitures, but the total value...