Monday, January 6, 2014

Merger Monday and the Destruction of Wealth

The stock market has been on a tear and it's all about mergers and acquisitions (M&A).

Last year ended up being a blockbuster for global mergers and acquisitions, with the total number of deals and values both rising by over 20 percent for 2010, hitting $2.4 trillion. Private equity buyouts meanwhile rose 7.2 percent, marking the strongest year for buyouts since 2007. Activity in M&A more than doubled in Australia; the Asia-Pacific region saw M&A deal value reach its highest value on record; and M&A deals also jumped 37 percent in Europe.

But of all regions, it was the emerging markets (EM) that posted the most impressive year. In 2010, the EM group saw 2,763 deals, worth approximately $557 billion. That marked a 20 percent increase in deal volume and a nearly 60 percent jump in total deal value.

But it wasn't exactly deals, deals, deals here in the States. The total value of American M&A only rose 3 percent year-over-year. But now M&A talk is really heating up in the United States.  (more...)


The commentary is most interesting... particularly:

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