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7mo ago

Global M&A Activity Slows Ahead of US Elections

Companies delay major deals due to regulatory uncertainty and upcoming US presidential elections.

People walk around the Financial District near the New York Stock Exchange (NYSE) in New York, U.S., December 29, 2023. REUTERS/Eduardo Munoz/File photo
A Wall Street sign is pictured outside the New York Stock Exchange, New York City, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo

Overview

  • Global mergers and acquisitions (M&A) activity is expected to weaken in the fourth quarter of 2024, with a significant slowdown in the US market.
  • US M&A volume in 2024 has decreased by 8%, while Asia-Pacific and Europe have seen increases of 54% and 7%, respectively.
  • Regulatory scrutiny and interest rates have particularly impacted 'megadeals' worth more than $25 billion, with no $50 billion-plus transactions signed this year.
  • Investment bankers anticipate a rebound in 2025, driven by potential Federal Reserve rate cuts and pent-up demand post-elections.
  • Private equity firms are preparing for increased activity next year, bolstered by lower interest rates and substantial capital reserves.