The global volume of corporate mergers and acquisitions has already exceeded last year’s full-year level this year. This is due to favorable circumstances for financing such transactions and the expectation that money will sooner or later become more expensive.
$3.6 trillion in mergers or acquisitions have been negotiated this year. That is 10 billion more than last year’s full-year volume. This is according to data from Refinitiv. The number of mergers and acquisitions also increased, by 24 percent to more than 35,000.
“This pace could continue for another 18 to 24 months as investors find new financing solutions and economic activity grows,” Andrea Guerzoni, vice president of consulting firm Ernst & Young, told Reuters.
The vast majority of trades took place in the United States, which has so far accounted for almost 60 percent of the total volume. The second Europe and the third Asia and Oceania accounted for almost equally, between 17 and 18 percent.
The record activity in the field of mergers and acquisitions is due to the improving economic situation in the world and the expectation of its further improvement, as well as the still extremely cheap money, which can be advantageously used to finance these transactions. And also the expectation that central banks in the near future will make money more expensive.
