Energy is a lifeline in a plummeting M&A market

Published September 3, 2022, 6:00 AMUpdated September 3, 2022 9:12 am.

Tense return of investment bankers. Rising rates, inflation, an energy crisis, headwinds are picking up and M&A activity is still shrinking after a record 31% year-over-year drop in 2021 compared to a 23% drop at the end of June, according to Refinitiv data. In France, the slowdown is approaching 39%, and in Europe – to 21% at the end of August.

Deal cancellations and sales suspensions are no longer uncommon. Ready to bet $44 billion on Twitter, Elon Musk gave in. In healthcare, KKR withdrew its $14 billion offer to buy Ramsay Health, while Ardian backed out of a €3 billion sale of its software company Dedalus. “There is nervousness in the system. These arbitrations, unthinkable six months ago, will continue,” the banker notes.

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