Global M&A volumes increased for the first time by $ 5 trillion, surpassing the $ 4.55 trillion record set in 2007, according to Dealogic. M&A’s total value stood at $ 5.8 trillion by 2021, up 64 percent from a year earlier, according to Refinitiv.

With the stock market rising and rising, cash flows, major purchasing funds, corporations and financing have reached 62,193 deals by 2021, an increase of 24 percent over the previous year.

Investment banks say interest rates are rising but business is expected to continue to improve next year.

Higher interest rates increase loan costs, which can reduce M&A activity. However, contract consultants still expect major mergers in 2022.

Facilitated monetary policy from the US Federal Reserve has fueled the stock market rally and helped the company’s executives to obtain cheaper financial support, encouraging them to pursue larger targets.

The United States has paved the way for M&A, covering almost half of the world’s total – M&A prices are close to $ 2.5 trillion by 2021, despite strong opposition from Biden’s administration. Graphic Lite from 2016 International M&A Volumes (Trillion Dollars)

For interactive graphics, click this link:

The biggest deals of the year include AT&T Inc.’s $ 43 billion deal to merge its media businesses with Discovery Inc. $ 34 billion used by Medline Industries Inc; The Canadian Pacific Railway took control of southern Kansas City for $ 31 billion. And the separation of American Behemoth General Electric Company and Johnson & Johnson.

According to a survey by distributors and consultants at the Grant Torton LLP, more than two-thirds of participants believe that despite the rules and the challenges of the epidemic, agreement rates will increase.

Discounts on sectors such as technology, finance, industry, and energy and energy cover most M&A volumes. Reference data shows that purchases by private equity firms have more than doubled this year to exceed the $ 1 trillion mark for the first time.

Despite the slowdown in the second half of the year, a deal involving special purpose buyers will further increase M&A volumes by 2021. SPAC deals account for about 10% of global M&A volumes and a total of several billion dollars.

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International M&A Volumes (Trillion Dollars) Since 2016

International M&A Volumes (Trillion Dollars) Since 2016

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(Reported by Nietz Nishant in Bengalru, edited by Anil Di’Silva)


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