In 2017, mergers and acquisitions reached the third-highest annual level since the 2008 crisis: over 50,000 worldwide. This is due to the buoyant markets and accelerating economic growth worldwide, which have encouraged CEOs to pursue major transformative deals, even if their targets are unwilling. This dealmaking frenzy started before Trump's tax reforms, which further benefit large corporations. Global M&A reached $3.54 trillion in 2017, powered by cheap debt financing and high CEO confidence.
One unsuccessful instance was the chipmaking company Broadcom Ltd.'s
Some of 2017's biggest acquisitions include CVS's
That said, Trump's tax policies have not been a driving factor in this past year's mergers and acquisitions deals. According to one expert, this is because the deals have typically been based on benefits resulting from the expected synergies that will take place post-combination, as opposed to a projection of what benefits may come as a result of the new tax rates. Post-tax reform, American companies with lots of cash trapped overseas may more easily engage that capital in the M&A market. On the other hand, Europeans will also be able to utilize the new policies to make more deals with the U.S.
- http://www.businessinsider.com/r-ceos-go-ma-hunting-as-booming-markets-unleash-dealmaking-spirits-2017-12
- http://www.independent.co.uk/news/business/news/mergers-acquisitions-m-and-a-2017-global-stock-markets-boom-rally-a8133276.html
- http://www.nasdaq.com/article/15-of-the-best-mergers-acquisitions-of-2017-cm898464
- https://hbr.org/2017/12/what-the-big-mergers-of-2017-tell-us-about-2018