M&A Surges as Confidence Spurs Deals in Computers to Consumer

Mergers and acquisitions have surged this month with megadeals for iconic companies such as Dell Inc. and H.J. Heinz Co., fueling optimism that more buyers are ready to embrace $10bn pricetags.

Almost $40bn in deals were announced Thursday, led by Heinz’s $23bn takeover by Berkshire Hathaway Inc. and 3G Capital, data compiled by Bloomberg show.

Transaction volume has increased by 27% so far this year compared with the same period a year earlier, signaling buyers are willing to spend again following last year’s mergers slump.

Record corporate profits and cheap borrowing costs are attracting buyers even as stock prices soar to a five-year high, with more than $140bn of announced M&A deals this month, data compiled by Bloomberg show.

The past two weeks alone have yielded at least four deals worth more than $10bn each, including the Heinz and Dell buyouts and Comcast Corp.’s $16.7bn purchase of General Electric Co.’s stake in NBC Universal.

'The Goldilocks era of post-crisis M&A has never been an if, but a when',  said JPMorgan Chase & Co. Vice Chairman James B. Lee, whose firm advised on Dell, Heinz and GE, as well as Liberty Global Inc.’s proposed $16bn takeover of Virgin Media Inc. 'CEOs are declaring that day has come'.

Hit the link below to access the complete Bloomberg article:

M&A Surges as Confidence Spurs Deals in Computers to Consumer

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