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M&A deals show new year fire

A flurry of deal-making by companies on both sides of the Atlantic has given the year the busiest start for mergers and acquisitions activity for a decade, firming up expectations of a bounce-back in volumes as the economy recovers.

With deals worth $34bn announced globally on Sunday and Monday, deal volumes so far this year have topped $83bn, up from $67bn last year. That puts 2011 so far ahead of the boom years, according to Dealogic, with deal volumes higher than in any year-to-date period since 2000.

Duke Energy agreed to buy US utility peer Progress Energyin a stock-based deal worth $13.7bn, or $26bn including debt. Meanwhile, US chemicals group DuPont sought to shore up its position in the fast-growing food and nutrition industry, signing a $5.8bn deal with Danisco of Denmark, the maker of food ingredients and enzymes.

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