Increased optimism among CEOs and anticipation of less regulatory scrutiny under President Trump are fueling a surge in megamergers, pushing the value of global takeovers back over $3 trillion.
Dealmakers are betting on a surge in megamergers under Donald Trump's presidency, following a rebound in large deals that pushed the value of global takeovers over $3 trillion this year. The value of mergers and acquisitions globally has increased by 11% so far this year, rebounding from the slump in 2022 when dealmaking fell short of the $3 trillion mark for the first time in a decade.
The value of megadeals, exceeding $5 billion, has surged by 19% year-to-date, driving the overall figures, even as the total number of deals dropped by 20% to a nine-year low, according to data from the London Stock Exchange Group. 'Especially for large-deal M&A, it's mostly about CEO and board confidence levels, and — putting your politics aside for a minute — there is a lot of optimism among CEOs for their businesses with the new administration,' said Tony Kim, co-president of investment banking at Centerview Partners. 'I don't think you can make a call on a gangbuster year in 2025, but certainly there are a lot of signs that point to that,' he added. Dealmakers anticipate that Trump's return to the White House will translate to less regulatory scrutiny of large mergers compared to the cautious approach taken by watchdogs during Joe Biden's administration. 'There's an expectation that the regulatory framework will be less burdensome,' said Anu Aiyengar, global head of advisory and M&A for JPMorgan Chase. The largest proposed deal this year involved Canadian retailer Alimentation Couche-Tard's $47 billion bid for Japan's Seven & i, the parent company of 7-Eleven, although no agreement has been reached. The Japanese group is also considering a rival buyout offer from members of its founding family. Other significant transactions include US lender Capital One's agreed acquisition of rival Discover Financial for $35.3 billion and consumer giant Mars's deal to acquire the Pringles and Pop-Tarts maker Kellanova for $35.9 billion
MERGERS AND ACQUISITIONS TRUMP ADMINISTRATION REGULATORY ENVIRONMENT DEALMAKING OPTIMISM MEGA DEALS
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