Goldman, McKinsey Strike Optimistic Tone on Europe M&A

Hello, it’s Dinesh Nair again. Today, I’m bringing you highlights of my conversation with top Goldman bankers and McKinsey executives on why we can be optimistic about European M&A. Elsewhere, Google finally agreed to buy cybersecurity firm Wiz, while Swiss insurers Baloise and Helvetia have been in on-and-off combination talks.

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Dealmakers started the year with rosy outlook as they believed Trump’s White House would be M&A friendly. Now, the optimism is fading with Trump’s frequent and unpredictable tariffs rhetoric.

At the Goldman/McKinsey M&A conference last week -- its seventh year in a row in London — bankers and executives were more upbeat about Europe, and they have good reasons.

Trump is in fact driving European deals in a different way. Under his threats of ripping up the transatlantic alliance, Germany is trying to unlock billions of euros for infrastructure and defense spending, while France and the UK are also bolstering their military budgets. Defense stocks across the continent have been on a tear as they are seen as the key beneficiaries.

“Investments in infrastructure and defense will be a positive stimulus and the need to create more European champions should propel activity on the continent,” said Andre Kelleners, co-head of EMEA investment banking at Goldman. “Our dialogue with CEOs and boards remains robust though, notwithstanding tariffs and a shift in the equity markets.”