2015 to be best M&A year since GFC

Following significant transactional activity in the US, experts have predicted that 2015 will be the biggest year for M&A since the global financial crisis.

Experts in the US have predicted that 2015 will be the biggest M&A year since the GFC, following US$875bn worth of deals in the US for the first half of 2015 – a nine per cent increase from the same period last year.

PricewaterhouseCoopers analysed Thomon Reuters data from the start of the year through to the end of May, and predicted that the market may just be getting warmed up.

According to the data, around 54 per cent of CEOs in the US plan to complete an acquisition this year.

“CEOs are looking at deals to strategically strengthen and protect their positions in this increasingly competitive marketplace,” said Martyn Curragh, a principal and US Deals leader at PricewaterhouseCoopers, in a statement.

“Corporate boards are deploying record amounts of cash to increase returns, and high stock prices are emboldening buyers and sellers.  The strong U.S. economy and rising confidence signals a strong finish to 2015, making it another record year for M&A value since 2007 and the doldrums of the financial crisis.”

Forbes reported that the professional services firm predicted that technology, pharmaceuticals, entertainment and media and oil and gas would continue to be the busiest sectors in the US for the remainder of 2015.

The predictions follow the US$50bn Heinz-Kraft merger and the US$55bn Charter-Time Warner deal earlier this year.

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