Total M&A value in the first month of 2012 stood at USD 148.2 billion, a decline of 45 per cent from the corresponding period a year ago, when it stood at USD 268.5 billion.

The year 2012 witnessed the "slowest start to a year since January, 2003, when USD 91.6 billion was recorded," Dealogic added.

The United States was the most targeted nation, attracting deals worth USD 57.8 billion, and Canada was the second-most targeted nation, with transactions worth USD 12.8 billion.

Interestingly, the value of M&A deals in Canada increased 12 per cent in January this year on a year-on-year basis, whereas in the US, M&A value declined by 53 per cent.

Furthermore, Europe-targeted M&A deals recorded their lowest tally since 2003, with deals worth just USD 35.8 billion announced.

A sector-wise analysis shows that oil and gas was the most targeted sector in January, 2012 with deals worth USD 25.5 billion, the highest level for January recorded so far and more than three times the volume recorded in January, 2011 (USD 7.2 billion).

"Oil and gas accounted for four of the top 10 deals in January, 2012, although the finance sector recorded the largest deal with Sumitomo Mitsui Financial Group's USD 7.3 billion bid for RBS Aviation Capital," Dealogic said.

Meanwhile, the value of Asia Pacific-focused merger and acquisition deals was a little more than USD 20 billion in January this year, a decline of 40 per cent vis-a-vis the same month last year.