American companies unleashed a dealmaking spree totalling more than
$50bn on Monday, as executives ignored a pending trade war and
uncertainty around US midterm elections to swallow European rivals in a
series of industry-changing mergers.
Boardroom confidence, cheap debt and record stock prices have spurred a
wave of activity that left global dealmaking at a record high of $3.2tn
in 2018. Companies are racing to remake themselves by snatching trophy
assets or consolidating with rivals before the business cycle turns.
Deals lined up on Monday ranged from the glitz of the catwalks in Milan
— as Michael Kors readied a multibillion dollar takeover offer for
storied Milanese fashion house Versace — down to the grit of the mining
world, with Canada’s Barrick Gold agreeing a $6bn all-stock purchase of
But the biggest prize was in media, as Comcast trounced 21st Century Fox
and Walt Disney in a weekend auction for Sky with a ?30.6bn bid, while
in the radio sector SiriusXM secured a $3.5bn deal for digital music
provider Pandora Media.
Global mergers and acquisitions have totalled $3.24tn so far this year,
40 per cent higher than the same time a year ago and ahead of the record
pace set in 2007, according to data from Thomson Reuters. Megadeals of
more than $5bn in value accounted for 44 per cent of transactions this
A rally in global stock indices has assuaged concerns that the
intensifying trade dispute between the US and China would dent economic
activity, and in turn dealmaking. The S&P 500 has climbed 16.5 per cent
over the past 12 months, while the Dow Jones Industrial Index rose by 19
per cent, and both sat near record territory on Monday.
工业平均指数(Dow Jones Industrial