“We still think in this lower growth environment with very cheap financing and low rates available that we’ll continue to see more of that merger activity over this part of the cycle," Cohn said Tuesday at an investor conference in New York sponsored by Deutsche Bank.
Bloomberg News reports that about $300bn of deals were announced in the first quarter, the least since the first three months of 2014, as market volatility spooked potential buyers, according to data compiled by Bloomberg. Last year, blockbuster deals among pharmaceutical, telecommunications and technology companies helped drive about $4 trillion in mergers. Some acquisitions have been blocked this year as regulators show little tolerance for deals among direct competitors.
Cost savings “drove the M&A cycle last year,” Cohn said. “Companies could merge themselves together and the rationale for the merger was to cut out expenses or duplicative costs.”
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