Urge to merge

With the return of a Republican to the US White House, many anticipate a business-friendly agenda will lift mergers and acquisitions (M&A) in the coming years. However, in 2021, the greatest period of M&A activity in the last decade occurred under Democratic leadership. Regardless of what happens in the US, regulators from Beijing to Brussels have placed M&A under greater scrutiny. Nevertheless, global M&A is on track to rise 25% in 2024 to USD 4.5 trillion in announced transactions. Lower interest rates and the prospect of improved merger synergies are expected to drive M&A up nearly 50% in 2025, according to estimates from Morgan Stanley.

Source: Dealogic, Morgan Stanley, November 2024.