JPMorgan predicts rise in smaller M&A

Megadeals will probably be replaced by a rising number of smaller acquisitions in 2016 as growing cash reserves keep last year’s record-breaking takeover momentum going, according to JPMorgan.

Bloomberg News reports that solid economic growth in the last few years has given investors the confidence to seek out acquisitions while a growing pile of cash reserves, about $6tril globally in the fourth quarter, has left potential buyers with plenty of power, JPMorgan said in its M&A Global Outlook Monday.

Still, after last year, when five of the 20 biggest deals in history were announced, buyers might be looking at relatively smaller targets, the report said. There were 20 deals worth more than $30bn last year, JPMorgan said.

'While the torrid pace of ‘elephant’ sized deals may slow, these may be partly replaced by a great number of large -- but relatively smaller -- deals that may end up fuelling M&A activity in 2016', the report said.

To access the complete Bloomberg News article hit the link below:

M&A Targets Shrink After Year of `Elephant' Deals, JPMorgan Says

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