Capital Calls-Merger bankers are just warming up

Wework

01/04/2021 02:15

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    NEW YORK, March 31 (Reuters Breakingviews) - Concise
insights on global finance in the Covid-19 era.
 
    -------------------------------------------------

PRIMING THE STOMACH. When it comes to merger fees, 2021 is
shaping up to be the banker equivalent of Nathan’s Famous Hot
Dog Eating Contest. Global deal volume hit a record in the first
quarter, nearly doubling year-on-year to about $1.3 trillion,
according to Refinitiv. The total was the second largest since
records began in 1980. Bankers are just getting warmed up
 urn:newsml:reuters.com:*:nL1N2JG102.   
    Among the highlights, General Electric  GE.N  said it would
merge  urn:newsml:reuters.com:*:nL1N2L81KJ its aircraft leasing unit with Ireland’s 
 AE.N  in a $34 billion transaction. Insurance company Chubb
 CB.BN  offered $23 billion for Hartford Financial Services
 HIG.N   urn:newsml:reuters.com:*:nL1N2LH18F. And special-purpose acquisition companies,
essentially pots of cash, featured heavily, like BowX  BOWX.O 
Acquisition’s deal to buy WeWork, valuing it at $9 billion
 urn:newsml:reuters.com:*:nL8N2LO4JD. 
    Dealmaking shows no sign of slowing, and the next three
months will surely blow away 2020’s abysmal second quarter.
Still, some combinations push regulatory limits. Two North
American railways announced a $25 billion deal  urn:newsml:reuters.com:*:nL1N2LK00A, and
Canadian mobile-phone rivals plan to merge  urn:newsml:reuters.com:*:nL1N2LD22S.
Watchdogs could make bankers choke on some of their proposals.
(Lauren Silva Laughlin) 
    
    On Twitter http://twitter.com/breakingviews
    
    Earlier in Capital Calls:
    
    Walgreens' Amazon vaccine  urn:newsml:reuters.com:*:nL1N2LT1YN     
    Saudi Arabia adds new scratch to crown jewel  urn:newsml:reuters.com:*:nL4N2LT45X
    Geely’s Volvo IPO may face another downgrade  urn:newsml:reuters.com:*:nL4N2LT444
    Julius Baer gets timely M&A green light  urn:newsml:reuters.com:*:nL4N2LT2XB
    Moutai’s conservatism tests investor patience  urn:newsml:reuters.com:*:nL4N2LT0HA
        
     
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 (Editing by Richard Beales and Katrina Hamlin)