M&A activity within the present global political framework…..

This topic contains 2 replies, has 3 voices, and was last updated by  Silman Ondrej Dia 11 months, 1 week ago.

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  • #89457

    Josh Liang Wee Ooi
    Participant

    In my view, over the last 10 to 15 years, many M&A deals were done on the back of globalization. Whether it was for expanding geographies, acquiring talent or technology or increasing efficiency of the overall supply chain, there was always an element of globalization behind many transactions. As you are all aware, the world has recently seen the rise of more national protectionism. Countries are more protective of their borders in many ways, including economically. Do you think this will or already is affecting the occurrence and types of M&A transactions we will see in the coming years? How and what do you expect to come from it?

    #90487

    Shayekh Ahmed
    Participant

    I believe nowadays Digitalisation is one of the key driving factors for M&A. I the marine industry I see that a lot of startups are working with new digital offerings and big corporates are interested to acquire these start-ups.

    #93974

    Silman Ondrej Dia
    Participant

    Hi there,

    As we’ve seen in the course M&As come in waves and some of the common factors leading to these waves are:
    – low interest rates
    – raising stock prices
    – booming economies
    We’re currently in such wave where interest rates are historically low, stock market overpriced, and economies are growing (although some at a slower rate by now). As long as such conditions last M&A transactions should continue at a high pace.
    In regards to national protectionism which is indeed increasing, I believe this should be considered more as a risk factor rather than a break to M&A and should concern more cross-border M&As. Companies will have to incorporate in their assessment the risks involved in eventually pursuing such deals.

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