Global industrial M&A activity showed continued strength in the third quarter, according to a new report from PwC. But the U.S. share remained near its lowest levels in a decade, likely due to growing recession concerns expressed by industrial leaders, including Fastenal's incoming CEO Dan Florness.

While this uncertainty may be dampening some deal making, the desire to refocus on core competencies is driving some of the activity, in line with what MDM has reported this year. Distributors and manufacturers are shedding noncore businesses, which are being snapped up by companies that see better alignment, such as Anixter's acquisition of HD Supply's Power Solutions Business in August.

Globally, Asia dominated deal making, accounting for nearly one-third of all deals reported in the third quarter. And Europe is seeing a pick-up, particularly in areas "on the verge of a recovery," according to the PwC report.

Cross-border activity, however, was limited, with only one in four deals in this category – the lowest share in "at least 10 years," the report notes.

The industry also continues to see unprecedented competition for targets between financial and strategic buyers. Financial buyers accounted for 50 percent of activity in the third quarter, as investor groups with plenty of cash look to expand their portfolios.

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