Turbulence in Chinese stock markets led to surges in international markets in August and created a sense of uncertainty about the prospects of global economic growth. Market volatility led to changes in the plans for listing on the stock exchange of many companies. However, the number of mergers and acquisitions in recent weeks shows that tilts the markets is not strong enough to stop the inertia of this type of transaction.
“Although in general market volatility to lead to a decline in transaction activity, in some cases stimulate companies to be cautious with mergers to protect shareholder value through the creation of larger and more stable business,” said Chris Ventreska analyst Bank JPMorgan.
Last month in the US have announced deals for over 300 billion. Dollars, which is the most active August in the history of mergers and acquisitions in the country. Since January, the value of transactions in the US reached 1.46 trillion. dollars, which is more than the entire 2014 to Dealogic data show that since the beginning of this year, transactions in the Asia-Pacific region reached $ 700 billion. dollars, which is the second highest score in history.
“We do not see any substantial effect on mergers and acquisitions of recent volatility in the market. Over the past few years had various events with short-term effect on the markets, but the volume of transactions continue to grow,” said Larry Hamdan, responsible for corporate transactions in the Americas in the bank Barclays.
Signal for the stability of this trend is the growing number of hostile takeover attempts. This week the Netherlands-based pharmaceutical company Mylan bid for 33 bln. Dollars for smaller rival Perrigo, the proposal was sent directly to the shareholders.