By Shayndi Raice 

Deal makers in Europe say they are hopeful a spate of recent activity signals mergers and acquisitions on the continent are back.

Deal volume in Europe, the Middle East and Africa, known as EMEA, is up 22% to $332.2 billion so far this year compared with the same period in 2014, according to data tracker Dealogic. The volumes have been boosted by megadeals, such as Royal Dutch Shell PLC's planned tie-up with BG Group PLC, valued at nearly $70 billion. And now Finnish telecom-equipment maker Nokia Corp. is in talks to buy French rival Alcatel-Lucent SA.

Economic growth in Europe has been modest, but some bankers think that fresh stimulus from the European Central Bank, a weak euro, low oil prices and easier access to borrowing may be enough to spark more deal activity.

"The combination of signs of an economic recovery and stabilization are reminding people that Europe is a big profit pool and an interesting market," said Roland Phillips, a London-based partner with boutique investment banking firm Centerview Partners LLC. The firm recently represented Kraft Foods Group Inc. in its megamerger with H.J. Heinz and Co. in the U.S. and British cookie-maker United Biscuits Ltd. when it was bought by Turkey's Yildiz Holdings.

Global M&A volume stood at $1 trillion so far this year, up 19% from the year-earlier period, according to Dealogic.

Some bankers attribute the spree to pent up demand. "Most of the recent activity has involved intra-industry consolidation, resulting in many cases from long-standing dialogue among industry players," said François-Xavier de Mallmann, global co-head of consumer, retail and health-care investment banking at Goldman Sachs Group Inc. in London.

But Europe still has further to go to catch up with the U.S. At the height of the last global M&A boom in 2007, deal volume in the U.S. and EMEA was roughly on par. Today, European deal volume accounts for 31% of global M&A, while the U.S. accounts for more than 46%, Dealogic found.

European deal makers have been disappointed before. Last year was a banner year for attempted deals that failed, including Pfizer Inc.'s pursuit of U.K. pharmaceutical rival AstraZeneca PLC and AbbVie Inc.'s tilt at Dublin-based rival Shire PLC. The value of takeover deals rejected or withdrawn totaled more than $570 billion last year, more than double the prior year's total and the second-highest on record after 2008, according to Dealogic. More than half of those aborted deals were in the EMEA region.

Some European bankers are hoping 2015 will be different. They point to the strong dollar and weaker euro as an opportunity for U.S. companies to take advantage of low prices. The recent purchase by FedEx Corp. of Dutch package-delivery company TNT Express NV for $4.8 billion is an example of a deal that was helped in part by currency moves. FedEx said negotiations between the companies began when the euro was falling toward 10-year lows against the dollar, which helped increase FedEx's buying power.

"While it's not a driver of M&A activity, there's no question it helps on the margin," said Adrian Mee, head of international M&A at Bank of America Merrill Lynch, based in London.

Write to Shayndi Raice at shayndi.raice@wsj.com

Access Investor Kit for Nokia Oyj

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=FI0009000681

Access Investor Kit for BG Group Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0008762899

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MLX29

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MM408

Access Investor Kit for BG Group Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US0554342032

Access Investor Kit for FedEx Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US31428X1063

Access Investor Kit for Nokia Oyj

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6549022043

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802591070

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802592060

Nokia (NYSE:NOK)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Nokia Charts.
Nokia (NYSE:NOK)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Nokia Charts.