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.
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'.
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