Global M&A volumes hit record high in 2021, breach $5 trillion for first time By Reuters

© Reuters FILE PHOTO: A road sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid


By Nikate Nisan

(Reuters) – A global deal is set to maintain scorching levels next year after a historic year for mergers and acquisitions (M&A) driven by cheap financing and booming stock markets.

Dealogic data reveals $5 trillion global merger and acquisition volume for the first time. That broke the previous record of $4.55 trillion in 2007. The combined value of the merger was $5.8 trillion in 2021, a 64 percent increase from the previous year, according to Refinitiv.

Washed with cash and driven by skyrocketing stock market valuations. Big buy funds, corporations and financiers made 62,193 deals in 2021, up 24 percent from the year-ago period. Because the new record is falling each month of the year

Investment bankers said they expect the deal mania to continue next year despite interest rate hikes.

Higher interest rates increase borrowing costs. That could delay mergers. However, deal advisers still expect a major merger in 2022.

The accommodative monetary policy from the US Federal Reserve (Fed) has spurred a stock market recovery. and giving the company’s executives access to cheap funding sources This will give them the courage to pursue larger goals.

The United States leads the way in mergers and acquisitions. Accounting for nearly half of global volume – the value of the merger will nearly double to $2.5 trillion in 2021, despite a tighter antitrust environment under Biden Graffi. C: Global M&A volume since 2016 (in trillions of dollars)

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The year’s biggest deals included a $43 billion deal for AT&T Inc (NYSE:) to combine its media business with Discovery (NASDAQ:) Inc; $34 billion acquisition of Medline Industries Inc. Canadian Pacific (NYSE:) Railway acquired Kansas City Southern (NYSE:) for $31 billion. and the collapse of the American giants general electricity (NYSE:) Co and Johnson & Johnson (NYSE:)

According to a survey of dealmakers and advisors by Grant Thornton LLP, more than two-thirds of participants believe deal volumes will increase despite regulatory challenges and the pandemic.

Agreements in sectors such as technology, finance, industry and energy and energy account for a large volume of mergers and acquisitions. Acquisitions backed by private equity firms more than doubled this year to cross the $1 trillion level for the first time, according to Refinitiv data.

Although activity slowed down in the second half. But deals involving special purpose sourcing firms have increased the volume of mergers and acquisitions in 2021. SPAC deals account for about 10% of global merger volume. and add billions of dollars in total value.

Global M&A volume since 2016 (in trillions of dollars)

Global M&A volume since 2016 (in trillions of dollars)

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