2015 is the hottest year in the US merger market

In the first half of 2015, the US merger and acquisition market was a buzz, including a $55 billion acquisition of Time Warner Cable from the US cable operator charter, Warner to Heinz Foods (Heinz) and Kraft Foods (Kraft) for nearly $50 billion in mergers and acquisitions. According to Thomson Reuters data and an analysis by PwC accounting firm (PricewaterhouseCoopers), the United States has finalized 4,654 mergers and acquisitions from the beginning of this year to May 31, worth as much as $875 billion. However, it is increasingly noticeable that, in the same analysis, PwC pointed out that the merger and acquisition market has just warmed up, and 2015 was the U.S. merger and acquisition market in the aftermath of the financial crisis in the hottest year.

According to PwC, a professional services firm, 54% of U.S. CEOs plan to implement a buy-out in 2015. In addition, the $875 billion merger and acquisition was based on two facts, compared with the same period last year, and PwC speculated that mergers and acquisitions activities could increase further in the second half of 2015.9%--

"CEOs are looking for deals that can strategically strengthen and protect their status in this increasingly competitive market," said Martin Martyn Curragh, head of the US sales and service team at PwC and one of PricewaterhouseCoopers partners, in a statement released in conjunction with the study report, " In order to increase return on investment, the company's board of directors used a record level of cash, and high stock prices also contributed to the determination of buyers and sellers. The strong US economy and growing determination suggest that 2015 will be a fruitful year and will create a new record of corporate mergers and acquisitions in the aftermath of the financial crisis. ”

The merger boom was a record-breaking cash: According to PwC, the so-called "transformation deals (over $10 billion or more)" accounted for 58% of total mergers and acquisitions in five months of the year. "Big mergers and acquisitions" for the pharmaceutical profession – such as US pharmaceutical company AbbVie AbbVie $21 billion to buy U.S. cancer drug maker Pharmacyclis, and Pfizer (Pfizer) buys U.S. drugs and medical equipment for $17 billion Shanghe (Hospira) Total value reached $150 billion, accounting for 17% of total acquisitions in the first half of 2015 years. Private equity trading accounted for 5% of the total, amounting to $44 billion.
"Today, while the ' Club deals ' and the big leverage buy-out that prevailed before the recession are few, private-equity firms are not idle," said Andrew Cristinzio, one of the head of the US private equity team at PwC Andrew Chris Qiao, in a study. Private equity still has a large amount of ' ammunition ' (i.e., cash) for investment. More complex private-equity structures are expected to emerge in the future, and distressed industries, which are less encouraged by corporate competition, will attract more attention. ”

If a recent private-equity deal heralds something, then Christine Qiao is right to speculate: this week, New York's centre Lane Partners agreed to pay $16.9 million to buy bankrupt saladworks.

So, in the latter half of the year, which occupations will be the most intensive merger and acquisition activities? According to PwC, it will also be the first half of the range of mergers and acquisitions, including technology, medicine, entertainment and media, and oil and gas. PwC says semiconductors will be a particularly popular category in technology careers. The financial services company said that "consolidation trends are driving aggressively large-scale trading in the semiconductor, communications and networking equipment sectors," and for example, at the end of May this year, Avago Technologies announced a $37 billion buy-out of chip maker Broadcom (Broadcom). (A few days after the company announced the deal, Intel announced it was seeking $16.7 billion to buy the chipmaker Altera, which further bolstered PwC's judgment.) ）

PwC cites a number of reasons for the underlying logic behind the pharmaceutical, entertainment and media and oil and gas occupation mergers and acquisitions activities. At present, the pharmaceutical profession has a "buy or be bought by others" mentality, make it a merger and acquisition activities continue to be active career. As for the media and entertainment professions, PwC noted that "the rapid development of content distribution channels is facing huge demand and disruption, which in turn increases the demand for mergers and acquisitions activities." "In the past six months, oil and gas prices have fluctuated, albeit to some extent easing the occupation's merger and acquisition activities, but PwC believes that as prices stabilize, industry companies ' balance sheets are reconfigured and mergers and acquisitions will rebound significantly.

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2015 is the hottest year in the US merger market