The Latest figures from PwC are showing a decline in the average size of mergers and acquisitions (M&A) in the global engineering and construction sector. This quarter saw 68 deals overall, 19 of which were in the construction materials manufacturing sub-sector followed by civil engineering and home building sub-sectors with 14 deals each. The M&A deal volume for Q2 2016 remained unchanged when compared to Q1 2016 but, declined marginally by 6%, compared to Q2 2015. Deal activity by value fell both sequentially and annually in all E&C categories except for civil engineering. Civil engineering is however seeing a 62% growth in value this quarter. Several categories also saw double-digit growth in volume but were lower in total value, indicating a trend toward lower average deal size for Q2 2016. Five megadeals – deals greater than US$1bn – were announced in Q2 2016 with a total aggregate disclosed value of $10.2bn. There were five mega deals in Q2 2016 compared to six and eight deals in Q1 2016 and Q2 2015, respectively. The top mega deals announced in the quarter was in the USA, involving Tesla Motor’s planned acquisition of SolarCity Corporation for US$2.8bn. Construction materials manufacturing and construction, the two largest sub sectors in Q2 2016, experienced a decline in deal value both sequentially and annually.