Economics
Political Upheavals May Herald Trouble for Megadeals in 2017
- Trump, China and regulation are on top of dealmakers’ minds
- Cross-border M&A drove majority of deals announced this year
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As companies brace for the impact of 2016’s political shocks and looming elections next year, global appetite for mega mergers may slow amid the prospect of increased protectionism.
The biggest transactions mostly involved buyers and sellers from different countries: Bayer AG’s acquisition of Monsanto Co. in the U.S., China National Chemical Corp.’s bid for Syngenta AG and SoftBank Group Corp.’s purchase of ARM Holdings Plc. Cross-border deals accounted for more than half of acquisitions larger than $25 billion announced this year, according to data compiled by Bloomberg. They also made up nearly half of the $3 trillion in total announced deals, the data show.