Donald Trump’s trade war is causing billions of dollars worth of acquisitions and initial public offerings (IPOs) to stall, according to people familiar with the matter. Companies like StubHub Holdings Inc., fintech giant Klarna Bank AB, and trading platform eToro Group Ltd. have put their planned listings on hold due to market uncertainty.
The S&P 500 fell 6% on Friday, its worst day since March 2020, wiping out $5.4 trillion in market value. The two-day decline has sparked fears that companies may delay or cancel their IPO plans.
“The market is justifiably reacting in an aggressive way,” said Jeremy Abelson, founder and portfolio manager at Irving Investors. “A company would be irresponsible to go out in this environment.”
The global stock rout is also affecting M&A markets, with deals worth more than $100 million facing wider spreads as traders become increasingly concerned about the impact of Trump’s tariffs.
Dealmakers are reeling from the uncertainty created by the president’s sweeping policy changes, which were expected to boost market activity. The reality of Trump’s tariffs has been more painful than expected, with some transactions under threat, including a €2.5 billion sale of an auto glass unit and a $2 billion acquisition of a German packaging firm.
Companies are bracing for further disruptions as markets continue to stabilize. However, those that have planned IPOs will likely revive their plans once the market settles.
Source: https://finance.yahoo.com/news/us-trade-war-hits-billions-172911010.html