2014: The comeback of mega-mergers?

Mega-mergers may make a comeback this year as large companies look to expand into new business areas with brave acquisitions and the economic outlook in many countries improves.

Consultancy Towers Watson says the strong performance of last year’s acquirers and a significantly improved economic outlook is likely to tempt more companies into mega-mergers and making brave acquisitions.

According to the Quarterly deal performance monitor, produced in partnership with Cass Business School, acquirers recorded their best performance in six years last year.

The share prices of those acquiring outperformed those of their non-acquiring peers by an average of 4.5 percentage points.

The total number of deals, however, was lower than in previous years. Large, transformational deals worth more than $10 billion (€7.4 billion) were also rare.

Towers Watson also predicts that Europe, most notably the UK, is likely to experience a “small recovery” in completed deals although this is unlikely to match the activity in the Asia Pacific region and North America.

North America is forecast to increase its domination while outbound Chinese deals are forecast to rise.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST