Goldman's Lemkau says regulatory climate chilling deals, but pipeline 'good'

The White House

Bloomberg Television talks to Gregg Lemkau, co-head of global M&A at Goldman Sachs at the Goldman Sachs Leveraged Finance Conference in Rancho Palos Verdes, CA.

Lemkau calls M&A pipeline for rest of year “good.

Lemkau says regulatory headwinds affecting big deals

“…and we've seen real regulatory headwinds, so the government has been a lot more active blocking transactions for both anti-trust and then for tax reasons, and I think in particular, as a risk to the largest transactions, that's what's chilled activity to a degree.”

 Biggest M&A concern is risk of antitrust

“If the deal is going to happen, everything's great, and I think what we're seeing now in a world where the anti-trust bodies are a lot more stringent on transactions is companies that are thinking about a deal where there might be a risk of anti-trust not approving it are going to think twice or think three times before they go out and do it, and I think that's really what's chilled some of the activity on a big, big scale.”

Seeing “massive” pickup in China outbound deals, with most of them “interloping” other deals

So we've seen a massive pickup in outbound M&A from China, so 26 percent of volumes –“

 Says volatility affects CEO confidence for deals

“…the one great qualitative factor that drives M&A is CEO confidence, and it's hard to measure… even though the markets have recovered, I think the anxiety at the CEO level and in the board rooms is still there and they're a little bit more cautious about going out and taking on some kind of external growth via M&A than they would have been a year ago”

Hit the link below to access the Bloomberg TV video:

Goldman's Gregg Lemkau on Mergers and Acquisitions

Source - Bloomberg TV



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