General Electric led a trio of groups planning big takeovers yesterday to lift the value of transactions launched in October to more than $500bn, in what has unexpectedly become one of the busiest months for dealmaking on record.
The surge in blockbuster mergers and acquisitions signalled renewed corporate confidence in the outlook for the US economy, dealmakers said, even as the country’s highly charged presidential race concludes in just a week.
Operating conditions have not changed drastically in recent years: companies are struggling to increase sales and historically low borrowing rates have made acquisitions an attractive way to boost revenue. That combination has provided the impetus for a multiyear boom in dealmaking led by industries where companies are seeking consolidation to gain scale over competitors and leverage over customers.