US Leads M&A Charge as Doldrums Hit Europe and Asia

By Marc Castro

Mar 22, 2013 04:05 PM EDT

The image are two men shaking hands to formalize an agreement. (Photo : Reuters)

Favorable conditions such as cheap financing costs, stronger equity markets and increasing confidence in the US economy has made more American companies undertake large acquisitions in the first quarter of 2013.

The increased activity more than makes up for the tepid activities in both Europe and Asia, allowing for an increase in the overall value of mergers and acquisitions.The US market increased dramatically, an overall rise by 62% during the first quarter alone. These mergers include US$23.2 billion takeover of HJ Heinz by Berkshire Hathaway and 3G Capital.

Global volume increased by 6% to US$430.4 billion by the period ending March 19, even when other regions such as Europe and Asia declined by 31% and 10% according to data from Thomson Reuters.

With the EU having an economy mired in debt with a bleak future ahead, other mergers and acquisitions in the region is expected to be tepid at best. 

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