Thursday, September 24, 2009
Looking to Europe for New M&A
Yes, M&A has been slow. It has been impressively slow. Yet, despite how cool the market for M&A has been of late, with deals like that of Kraft and Cadbury and a resurgence in talks concerning Deutsche Telekom possibly buying Sprint Nextel Corp. to merge with T-Mobile things are looking up. The belief that there is a possible rise to M&A, especially in Europe, stems from the fact that high-end good manufacturers and sellers are having a hard time these days and that they may have to take action in order to save themselves. Also, with such major deals like that of Kraft taking place, there is going to be a resounding fear of being left behind while the rest of the industry continues to shift and expand. The fields that we see as having the most potential for expansion in M&A are those of the pharmaceutical industry (considering many companies are losing patents to their drugs in 2012), beverages (especially beer) and other high-end luxury goods. Hopefully once these take off the majority of other industries will soon follow. European companies are currently being seen as at the fore-front in possibilities for M&A, so it is very likely that things will really start off there.