The acquisition of an Austria-headquartered logistics group by a Japanese peer was the largest M&A deal struck in Europe in May.

Nippon Express (Europe) GmbH, a subsidiary of Tokyo-based global logistics group Nippon Express Holdings Inc., announced May 12 a €1.4 billion deal to acquire cargo-partner GmbH. This was one of two European transactions in May with a valuation of more than €1 billion, S&P Global Market Intelligence data shows.

Cargo Partner consists of 63 individual companies focused on air and sea freight forwarding in central and Eastern Europe. It had around 2,000 staff, €2.06 billion of revenue and €53.8 million of net profit as of the end of 2022.

Nippon Express will pay €845 million up front, with a further €555 million contingent on certain financial targets being met. The deal bolsters the Japanese company's presence in Europe, which accounts for about 9% of its revenue.

The transaction marked the second consecutive month where the largest deal involved a European company being sold to a trade rival from beyond the continent. In April, US-based Carrier Global Corp. agreed a €11.83 billion deal for the heat pump unit of Viessmann Group Gmbh & Co. Kg, a transaction that has come under scrutiny from the German government.

The next-largest deal struck in May was the €1.32 billion sale of UK-based employee engagement platform operator Reward Gateway (UK) Ltd..

The business's private equity backers ABRY Partners LLC and Castik Capital Partners GmbH sold to French company Edenred SE, in what was one of five deals among 10 largest transactions in May involving private equity firms.

Overall M&A activity remained weak in May, reflecting a trend seen throughout the year so far. The 981 deals struck in the month represent a 2.9% drop from April and a 33.3% decline from the year-ago period.

The trend was even more stark when looking at total deal values, which fell 60.1% month over month and 80.8% year over year to €20.03 billion.

* Access the deal profile page for the Cargo Partner transaction. * Access the deal profile page for the Reward Gateway transaction. * Read more about technology M&A in Europe.