$4.6 Trillion In Global M&A Broke Records This Year
M&A activity throughout 2015 will prove to be the largest year ever for M&A activity, according to a report by the Financial Times, citing Thomson Reuters data.
The report noted that global M&A activity for 2015 peaked at $4.6 trillion, eclipsing the prior record of $4.3 trillion just eight years ago. Many companies explored deals to create synergies and fuel growth, while others took advantage of cheap financing, or did so out of pressure from activist investors.
Many of the notable deals occurred with a price tag in the tens of billions, while a few included a price tag in the hundreds of billions. For example, Pfizer Inc. (NYSE: PFE) has agreed to pay $160 billion to acquire Allergan plc Ordinary Shares (NYSE: AGN) while Anheuser Busch Inbev SA (NYSE: BUD) agreed to pay around $104 billion to acquire SABMiller.
However, investors shouldn't expect the plethora of M&A deals to continue in the coming year.
"Turmoil in the high-yield market will absolutely dampen M&A activity, particularly in the larger, leveraged deals," Peter Weinberg, founder of boutique investment bank Perella Weinberg Partners told the Financial Times.
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