Institutional Investor (May 8)
M&A appears poised to hit new highs. “Announced global deals this year have already hit $1 trillion as of the end of March, one of the highest quarterly levels since 1998 and almost double the level announced for the same period a year ago. The trend is reaching across industries and regional markets.” Several factors are driving the boom? M&A “reduces the uncertainty as to how surplus capital will get put to work and, with the cost of capital so low, raises the odds that acquisitions can boost future earnings growth.”
Tags: Acquisitions, Cost of capital, Earnings growth, Global deals, M&A, Surplus capital, Uncertainty
The Economist (May 3)
“After years in the doldrums, big mergers and acquisitions (M&A) are making a comeback. Optimists hope this is a sign of bosses daring to be bold because of improving economic prospects. Sceptics wonder if the managers are in fact doing deals to conceal a worrying lack of growth opportunities—or just cutting costs by merging with companies in kinder tax jurisdictions.”
Tags: Bold, Bosses, Comeback, Costs, Doldrums, Economic prospects, Growth, Jurisdictions, M&A, Managers, Opportunities, Tax
Euromoney (August Issue)
“The value of mergers and acquisitions by Japanese companies of those in southeast Asia has reached $8.2 billion over this year to date, according to Dealogic, further demonstrating Japan’s relative strength on a regional and global basis. That makes Japan the highest single-country bidder for any southeast Asian companies.”
Tags: Global, Highest bidder, Japan, M&A, Southeast Asia, Strength
New York Times (February 14)
“The mega-merger is back.” Big deals were out for five years. “Wall Street deal makers and chief executives, brought low by the global financial crisis, lacked the confidence to strike the audacious multibillion-dollar acquisitions that had defined previous market booms.” In 2013, the cycle changed with the announced takeover of Heinz and the proposed merger of US Airways and American Airlines. “Merger activity has suddenly roared back to life.”
Tags: American Airlines, Heinz, M&A, Market cycle, US Airways, Wall Street
Euromoney (January issue)
“It won’t take much to improve on last year’s ECM and M&A revenue numbers. According to Dealogic’s preliminary full-year 2012 figures, ECM revenue fell to $13.3 billion last year—the lowest since 2003. M&A revenue was $17.3 billion in 2012—down 15% compared with 2011.” Debt capital markets, however, fared better in 2012 with DCM revenue at $21.1 billion, a 23% increase over 2011.
Wall Street Journal (May 30)
“Flush with cash and bolstered by a strong currency, Japanese companies are in the midst of the biggest boom in overseas investment the country has ever seen.” At home, earnings are threatened by the shrinking domestic market, uncertain electric supply, disrupted supply chains, and weak domestic economy. In the past, “Japanese mergers-and-acquisitions booms sometimes focused on trophy properties with little regard to value.” Today’s boom is driven by value and “powered by fear.”
“Flush with cash and bolstered by a strong currency, Japanese companies are in the midst of the biggest boom in overseas investment the country has ever seen.” At home, earnings are threatened by the shrinking domestic market, uncertain electric supply, disrupted supply chains, and weak domestic economy. In the past, “Japanese mergers-and-acquisitions booms sometimes focused on trophy properties with little regard to value.” Today’s boom is driven by value and “powered by fear.”
The Economist (December 17)
“Japanese firms spent a record $80 billion on some 620 foreign companies in 2011…, exceeding the previous record of 466 deals worth $75 billion in 2008.” This major shopping spree is different. Corporate Japan’s acquisitions of the 1980s showed strength. “This time, it is a symptom of weakness.” Multiple calamities made 2011 “wretched” for Japan and, due to long-term demographics, “Japanese firms find it nearly impossible to expand domestically.”
Tags: 2011, Calamities, Demographics, Japan, M&A, Overseas
