Global M&A Growth Challenged by Regulation

During first half 2014, a total USD1.57 trillion worth of M&A deals were closed, making it the busiest six-month period in cross-border M&A since 2007, according to Mergermarket data. With an estimated EUR1 trillion in current reserves at European-listed companies, the strong pace of dealmaking is expected to continue but not without its challenges.

According to a new report by law firm Paul Hastings, “Global M&A: Momentum for Growth”, which is based on interviews with 40 top European corporations, investment banks, private equity funds and other business leaders. The potential limitations on a company’s freedom to manoeuvre, due to ever-stricter competition laws, meant that other forms of corporate combination may come back into favour as companies try to navigate antitrust regulations.

“We are witnessing a major increase in the amount of sometimes extra-territorial regulation, in areas such as anti-trust, anti-corruption and tax,” says Guillaume Kellner, partner in charge of the Corporate Department at Paul Hastings in Paris. “This trend is increasing the legal risks for M&A transactions, forcing acquirers to think ahead and adopt increasingly sophisticated approaches.”

Download the complete report: Global M&A: Momentum for Growth (PDF Format)