A global boom in dealmaking is set to continue this year as companies use cheap funds for acquisitions and sell more shares to the public, according to top bankers at JPMorgan Chase and Deutsche Bank.
“There is an inclination for chief executive officers to want to do more acquisitions since capital is available at a very attractive rate,” JPMorgan’s investment-bank head Daniel Pinto said in an interview at the World Economic Forum in Davos, Switzerland. “When you have the global economy growing the way it is now, CEOs and their boards feel confident to try more investments or acquisitions. It’s very possible we will see more deals than we did last year.”
Bloomberg News reports that the value of mergers announced so far this year totals $164 billion - the highest since the start of 2000 - as interest rates remain near record lows and global economic growth spurs expansion. President Donald Trump’s overhaul of the U.S. corporate tax, which cut rates and reduced the levy on bringing foreign earnings back to the U.S., may also fuel dealmaking.
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