Global M&As to rebound by 15 per cent

Global mergers and acquisitions may rebound from a four-year low next year, rising roughly 15 per cent to about $2.5 trillion (Dh9.1trn) to $2.7trn as the dealmaking environment improves, strategists at UBS have said.

Any such pick-up would be welcome for shareholders – UBS said investors have historically received bid premiums of 30 to 40 per cent – and for banks and law firms, who can reap big fees for helping structure deals.

Global M&A has plunged 40 per cent in the year to October 29, said Thomson Reuters, with $1.55trn of deals announced. In 2007, the peak of the last merger boom, full-year M&A topped $4.28trn.

UBS strategists said many firms were seeing significant cash flow, while sluggish economic growth meant companies would often have to buy growth rather than expand organically.

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