U.S. deals activity to reach a record year

Jul 12, 2018

Driven by pressure to deliver on high earnings and match shareholders’ expectations, U.S. corporations have increasingly been considering buying their competitors. As motivation for growth continues to fuel U.S. companies, mergers activity remain on track towards reaching a record year.

“With every day that goes by, they have a strengthening portfolio and balance sheet,” Chris Ventresca, Global Co-Head of M&A said of companies across sectors in an exclusive interview with CNBC.com.

Across leading takeovers in technology, health care and energy, U.S. companies announced $1.35 trillion in M&A deals through June 2018, 67% higher than the first half of 2017. While megadeals have contributed to the number of deals by surging 125%, cross-border transactions have also been credited to the strong M&A activity climbing 48% to $462 billion.

Although M&A activity is probable to slow down ahead of the next recession, Ventresca states, “the next economic contraction isn’t likely until at least 2020. As we look into next year, we still see things more supportive of M&A than dampening. The desire to make better, stronger, more global companies remains.”

Read the full article on CNBC.com.

 

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