Europe M&A surges but U.S. slows sharply amid uncertainty
Acquisitions of European companies surged in recent months, amid optimism about the region’s economic prospects, but global deal-making subsided and the total value of U.S. deals fell sharply due to uncertainty about President Donald Trump’s tax reform and deregulation agenda.
Mergers and acquisitions in Europe rose 45 percent year-on-year to $234 billion in the second quarter, as companies bet the region’s economies will bounce back, according to Thomson Reuters data released on Thursday.
Global M&A dropped 12 percent to $771 billion, however, and U.S. M&A dropped 36 percent to $281 billion.
“The EU recovery is happening and has made companies more attractive even if there are increased regulatory hurdles,” said Hernan Cristerna, global M&A co-head at JPMorgan Chase & Co (JPM.N).
In the second quarter, Italian toll road operator Atlantia SpA (ATL.MI) made a 16.3 billion euro ($18.64 billion) offer for Spanish peer Abertis Infraestructuras SA (ABE.MC), while chemicals companies Huntsman Corp (HUN.N) and Clariant AG (CLN.S), of the United States and Switzerland, respectively, agreed a $14 billion merger. Read more…