Global Dealmaking Exceeds $2 Trillion

Overview

Worldwide dealmaking for 2018 passed the $2 trillion mark this week, on track for the biggest year for mergers and acquisitions ever, according to data from Thomson Reuters Deals Intelligence. Global mergers and acquisitions had their strongest start to a year ever, totaling $1.2 trillion in the first quarter, and that trend has continued in the second quarter. Tax cuts have encouraged recent deal activity. The Republican tax reform bill, which was signed by President Trump in December, lowered the corporate tax rate to 21 percent from 35 percent and made it cheaper for multinational companies to repatriate foreign cash. Companies have been using these extra savings to make additional investments. The value of M&A deals globally increased 67 percent year-on-year in the first quarter, Thomson Reuters data shows but the number of deals dropped by 10 percent, reflecting that the average size of deals is getting bigger.

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