empty
31.12.2021 04:22 PM
2021 is the year of mergers and acquisitions: how a trader can use this information

Economists are confident that global transactions will continue to grow rapidly next year after a historic year for mergers and acquisitions (M&A) activity, which was largely fueled by the availability of cheap loans and bullish stock markets.

2021 is the year of mergers and acquisitions: how a trader can use this information

This image is no longer relevant

According to the research company Dealogic, the global volume of mergers and acquisitions exceeded $5 trillion for the first time in history. The previous record was $4.55 trillion in 2007. According to Refinitiv, the total value of mergers and acquisitions in 2021 amounted to $5.8 trillion, which is 64% more than a year earlier.

In 2021, large buyout funds, corporations, and financiers, who gained access to cash and were encouraged by the rapid growth of stock markets, concluded 62,193 transactions, which is 24% more than a year earlier, as record figures fell during each month of the year.

Investment bankers expect that the rush to conclude deals will continue next year, despite the impending increase in interest rates.

Higher interest rates increase the cost of borrowing, which may slow down the activity in the field of mergers and acquisitions. However, transaction consultants still expect a flurry of large mergers to occur in 2022.

The soft monetary policy of the US Federal Reserve System provoked the growth of the stock market and provided the management of companies with access to cheap financing, which, in turn, encouraged them to achieve major goals.

In terms of regions, the United States was in the lead. They account for almost half of global volumes - the cost of mergers and acquisitions has almost doubled to $2.5 trillion in 2021, despite a tougher antitrust environment under the Biden administration.

The biggest deals of the year included AT&T Inc's $43 billion deal to merge its media business with Discovery Inc; the $34 billion buyouts of Medline Industries Inc; the $31 billion deal between Canadian Pacific Railway, which is in Warren Buffett's portfolio, with Kansas City Southern; and the breakup of American giant corporations General Electric Co and Johnson & Johnson.

According to a survey of transaction participants and consultants, more than two-thirds of respondents believe that the volume of transactions will grow, despite the problems associated with regulations and the pandemic.

Transactions in sectors such as technology, finance, industry, energy, and electricity accounted for the bulk of mergers and acquisitions. According to Refinitiv, this year the buyout financed by private investment companies has more than doubled and exceeded the $1 trillion mark for the first time.

Despite the slowdown in activity in the second half of the year, the conclusion of deals involving special purpose companies further increased the volume of mergers and acquisitions in 2021. SPAC deals accounted for about 10% of global mergers and acquisitions, and they added several billion dollars to the total.

Such information is very useful to traders who are interested in trading stocks. Since acquisitions always indicate inflows of finance, usually after the announcement of the transaction, the shares go up. So, John Outers, one of the leading analysts at Bloomberg and, in the past, the Financial Times, recommends buying stocks and corporate bonds of such companies this year.

In addition, mergers guarantee an increase in liquidity, which the markets necessarily take into account when evaluating certain aggregate assets. Therefore, if you are interested in the stock market, start with conglomerates that have spent money on mergers and acquisitions this year – these companies have a good rating, financial profile and will be an excellent acquisition.

Egor Danilov,
Especialista em análise na InstaForex
© 2007-2025
Selecionar intervalo de tempo
5
min
15
min
30
min
1
hora
4
horas
1
dia
1
s.
Ganhe com as variações das taxas das criptomoedas com a InstaForex.
Baixe o MetaTrader 4 e abra a sua primeira operação.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    PARTICIPE DO CONCURSO

Recommended Stories

Ataques do Irã agravam crise do petróleo: S&P 500 congela antes da divulgação de dados importantes dos EUA

Ataques dos EUA ao Irã geram preocupações sobre petróleo e retaliação S&P 500 perto das máximas de fevereiro, mas mostrando sinais de estagnação Aumento dos preços do petróleo gera preocupações

Thomas Frank 16:21 2025-06-23 UTC+2

Resumo das notícias do mercado americano de 23 de junho

As tensões geopolíticas pesam sobre os mercados Os investidores permanecem cautelosos em meio à escalada das tensões no Oriente Médio, enquanto aguardam uma possível retaliação do Irã. Embora as reações

Ekaterina Kiseleva 16:03 2025-06-23 UTC+2

Riscos no abastecimento de petróleo, Ásia avança, dólar se mantém estável

Mercados acionários asiáticos sobem na sexta-feira Petróleo oscila perto da máxima de 4 meses e meio devido aos riscos de choque de oferta Dólar se mantém resiliente devido à demanda

Thomas Frank 15:33 2025-06-20 UTC+2

Decisão do Fed não abala o mercado cripto. Bitcoin mira US$ 205.000 até o final do ano.

Após a reunião de ontem do Federal Reserve, que manteve sua taxa de referência inalterada, os mercados reagiram com pouca intensidade. Os principais índices de ações seguiram dentro de suas

Larisa Kolesnikova 17:03 2025-06-19 UTC+2

Os investidores estão confusos: os dados são fracos, a política é agressiva, a esperança está nos títulos

Os rendimentos do Tesouro reduzem as perdas anteriores após o discurso do presidente do Fed, Powell. As preocupações com o Oriente Médio permanecem. O líder iraniano rejeita a exigência

Thomas Frank 15:03 2025-06-19 UTC+2

Investidores confusos: dados fracos, política monetária restritiva, esperanças depositadas nos títulos

Os rendimentos do Tesouro reduziram as perdas anteriores após as declarações do presidente do Fed, Jerome Powell. As tensões no Oriente Médio persistem, com o líder iraniano rejeitando as exigências

14:52 2025-06-19 UTC+2

Futuros em alta enquanto o mundo está em alerta: mercados reagem às sinalizações do Fed e à geopolítica

Futuros em alta: Dow 0,21%, S&P 500 0,28%, Nasdaq 0,35% Decisão da política monetária do Fed esperada; Suécia reduz taxas de juros Airbus aumenta meta de dividendos e impulsiona ações

Thomas Frank 17:00 2025-06-18 UTC+2

Futures trading with gains while markets in limbo. Market participants respond to Fed's signals and geopolitics

Futures contracts rise: Dow +0.21%, S&P 500 +0.28%, and Nasdaq +0.35%. Markets await Fed's policy decision. Swedish central bank cuts interest rate. Airbus lifts dividend target, boosting shares. Gerresheimer jumps

17:00 2025-06-18 UTC+2

Bitcoin ainda imune às tensões geopolíticas, mas conflitos militares podem abalar o mercado de criptomoedas

De acordo com analistas, o conflito militar em andamento entre Israel e o Irã pode ter um impacto significativo no mercado de ativos digitais. Em caso de um desdobramento negativo

Larisa Kolesnikova 16:34 2025-06-18 UTC+2

Resumo de notícias do mercado dos EUA para 17 de junho

As tensões no mercado de ações dos Estados Unidos estão aumentando à medida que o conflito entre Israel e Irã se intensifica. Analistas alertam que uma possível guerra em larga

Ekaterina Kiseleva 14:49 2025-06-17 UTC+2
Não pode falar agora?
Faça sua pergunta no chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.