By Joshua Fineman July 2, 2019 1:53 PM
- FTC has shown unusual scrutiny of biotech acquisitions
- Doubts linger over whether better China relations are needed
A slow start to the year for mergers and acquisitions — hamstrung by trade issues with China — picked up in June with AbbVie Inc.’s planned purchase of Allergan Inc., United Technologies Corp.’s agreement to buy Raytheon Co. and Eldorado Resorts Inc.’s acquisition of Caesars Entertainment Corp.
“There was absolutely a chill in corporate suites across the world, the result of trade tensions to be solved in May not happening,” Brett Buckley, an event-driven strategist at WallachBeth Capital LLC, said in an interview. “We now have a number of deals being announced again very recently — that has brought up that number of pending deals.”
Buckley said that until recently there were about 40 deals topping $500 million in value announced in the U.S so far this year, below the 55-70 transactions typical in an average first half since the financial crisis. With this recent flurry of announcements in the past month, the number of pending deals is back into the mid-50s. Read More…