US President Donald Trump’s return to power has revitalized hopes of mega-deals among dealmakers, who are optimistic that his administration will provide a boost to M&A activity.
The rebound in mega-deals comes as investors and companies look for opportunities in the current economic environment. With Trump at the helm, dealmakers expect his trade policies and tax cuts to create a more favorable business climate, leading to increased demand for large-scale acquisitions.
Mega-deals are typically defined as transactions with values above $10 billion. According to data from Dealogic, mega-deals have been on the rise since Trump’s inauguration, with 2020 seeing an increase in such deals compared to previous years.
Deal experts point to several factors that contribute to the renewed optimism about mega-deals under Trump. These include his renegotiation of trade agreements with countries like Canada and Mexico, as well as his tax reform package, which lowered corporate tax rates.
While some dealmakers remain cautious due to ongoing global economic uncertainty, others are eager to capitalize on what they see as a business-friendly environment. With Trump’s re-election prospects uncertain, dealmakers may be hesitant to wait for a clear signal before making big bets on mega-deals.
As the US presidential election heats up, one thing is clear: dealmakers will be watching developments closely and waiting for any signals that could impact their business plans.
Source: https://www.ft.com/content/ad93c014-e083-488e-905e-f8f0076011d6