US M&A sentiment strong despite antitrust concerns

Author: Edward Price | Published: 3 Nov 2015

A strong year of M&A activity is slowing, but counsel in the US and Canada remain cautiously optimistic about 2016. Antitrust concerns are expected to linger until after the next year’s Presidential elections though.

In July, IFLR was reporting that M&A activity in the first half of 2015 was higher than any time since the financial crisis. Healthcare and pharma were the industries to watch, while payment structures mixing equity and cash were taking advantage of market benefits.

But a downward tick in M&A volume started earlier this year, partly driven by uncertainty over US monetary policy. During 2015, markets watched the Federal Reserve for indications of when interest rates might rise. When it seemed the Federal Open Markets Committee was finally going to raise the federal funds rate in September, even strategic acquirers slowed their activity.

Jeffrey Singer,
Stikeman Elliot
Meanwhile, market gyrations...