Hedge funds specializing in bets on mergers and acquisitions are starting to see investors withdraw funds, prompting them to take a more cautious approach after being caught out by more than 500 corporate deals globally failing this year.
Sao Paulo-based investment bank and asset wealth manager Grupo BTG Pactual said Brazil's presidential elections scheduled in October 2014 will curtail the mergers and acquisitions activity this year, Bloomberg reported.
China is set to become Asia's leader in outbound corporate acquisitions this year, ending Japan's two-year reign, as the country's appetite for overseas targets expands beyond natural resources and into areas such as food and banking.
Chinese M&A activity was slow due to its country's leadership change while Japan and Thai tycoons led the way in 2013.
Antitrust regulators in the European Union would review M&A deals to gauge their effects on local markets.
The standoff on the M&A deals in the mining sector has tested the patience and skills of bankers.
According to a report by Ernst & Young, 391 merger and acquisition deals with a combined value of US$15.2 billion were recorded in the first half of 2013.
Texas firms took a breather and said “time out” on M&A activity.
Global plastics M&A activity fell in first half of 2013.
Piper Jaffray finalized its deal to buy M&A firm Edgeview Partners.