US tax reform, consolidation a boost for M&A mega deals

Author: Olly Jackson | Published: 13 Jul 2018

The number of M&A mega deals for the first half of this year has more than trebled compared to the same period last year. There is little sign of this growth slowing down in spite of uncertainty ahead.

"Interest rate rises are unlikely to move the dial much," said an M&A associate at a global investment bank. "The bigger question is trade and Brexit which certainly makes people cautious. If the Chinese trade war escalates then this could have a big impact on big M&A deals."

But Richard Browne, global co-head of corporate at Allen & Overy, said he was slightly surprised by the scale of the increase. "Our pipeline is bulging with work and I don’t see signs of it slowing up," he said.

A report from Allen & Overy found the number of deals exceeding $10 billion rose by 301% in H1...