The Trump administration has confirmed it will maintain Biden-era antitrust guidelines for mergers and acquisitions. This move is a blow to investors who had been expecting looser enforcement, which could impact the stock market’s outlook on M&A activity.
Private companies have argued that the current guidelines, introduced by the former administration in 2023, are too restrictive and have contributed to failed mergers in recent years. Federal Trade Commission Chairman Andrew Ferguson has warned that changing antitrust guidelines frequently creates an unstable environment for businesses.
The existing framework for evaluating proposed mergers will remain intact, with over a dozen factors considered by regulators. This means no significant changes to the way deals are assessed, which was previously expected to boost M&A activity and stocks.
Wall Street had been optimistic about a “supercycle” of mergers, driven by increased deal-making and stock growth. However, confidence in these forecasts has waned due to rising inflation fears, trade uncertainty, and concerns over earnings. The administration’s stance on mergers reinforces the perception that regulatory policies are partisan and unpredictable, making it difficult for businesses to plan for the future.
Source: https://markets.businessinsider.com/news/stocks/antitrust-ftc-mergers-deals-activity-trump-bump-tariff-inflation-trade-2025-2