By Sharon Kimathi, Practice Insight deputy
Market sources are adamant that mergers and acquisitions
(M&A) will rise this year, despite the downturn in equities
markets and political uncertainty in the UK and US. Sources
have told IFLR that growing nationalistic regulations are the
main deal hindrance.
Jana Mercereau, head of corporate M&A at Willis Towers
Watson in New York is convinced that rise in protectionist
rhetoric in regulations will affect deal flow.
"We expect to see a global decline in the number of
cross-border deals due to regulatory constraints fuelled by an
increasing trend towards protectionism," she said.
Her take is that this will lead to a more defensive strategy
of domestic consolidation, for which some nations will be
better-equipped than others.
Meanwhile, a senior in-house lawyer at a Swiss bank in
London thinks the real roadblock curbing market activity is
protectionist regulations in Europe...