Goldman president positive about M&A outlook

Gary Cohn Davos 2013 Interview Pic

Goldman Sachs President Gary Cohn said the same forces that helped fuel near-record mergers and acquisitions in 2015 remain in place today and that the outlook for the business remains bright.

“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.”

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

Goldman’s Cohn Says M&A Outlook Remains Bright After Strong ‘15

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