According to Thomson Reuters weekly data, there has been a 75% higher worldwide mergers and acquisitions value compared to last year’s worth as presented by $2 trillion deals.
The increase in mergers and acquisition worth is assisted by the large-cap companies’ series of high value deals in the stock market. As reported, eight of the present deals are recorded to be worth $5 billion, which have been made this week. The data is declared to be a weekly deal all-time record among large market capitalization members of the stock market. Better than last year, the deals hit $915.9 billion in total until this 17th of July.
The worldwide mergers and acquisitions value growth is due to high level deals taken over by top companies in the market. Last Tuesday, Reynolds American, which is known as the maker of Camel cigarettes, had declared acquisition of Lorillard company for a value of $26.8 billion. Other than that, there has been a third company taking part in the said arrangement, which is Imperial Tobacco Group of Britain. The company had invested $7.1 billion for both companies’ assets and a number of brands. In relation to this, M&A league tables were spearheaded by Goldman Sachs, the adviser of Imperial Tobacco Group. Sachs was followed by Citi and Morgan Stanley.
According to analysts, the growth of worldwide mergers and acquisitions value may be due to the contentment of people with regards to global economy, which made CEOs to take risky steps without losing their confidence. Basically, the $2 trillion value is provided by the most active half of the year recorded since 2007. Last year, the first six-month value of the mergers and acquisitions only reached $1 trillion worldwide and followed by $1.2 trillion at the end of 2013.