Global mergers and acquisitions (M&A) activity fell 36 per cent year-onyear in the second quarter, but investment bankers and lawyers expressed optimism that the stock market's recovery will gradually restore chief executives' dealmaking confidence.The total value of M&A fell to US$732.82 billion in the second quarter of 2023 from $1.14 trillion in the second quarter of 2022, according to Dealogic data as of June 29, as high interest rates and a stand-off over the US debt ceiling kept dealmakers on edge.The quarterly tally was higher than the first quarter of 2023, when $601.32 billion in deals was announced, giving grounds for optimism to those who argue the recovery in the M&A market has started.M&A volumes in the US declined by 30 per cent to $318.4 billion, while Europe and Asia Pacific volumes shrank 49 per cent and 24 per cent respectively.Major transactions during the quarter included pipeline operator Magellan Midstream Partners' nearly $19 billion takeover of natural gas-focused ONEOK Inc, grain trader Bunge Ltd's $17.3 billion acquisition of rival Viterra Ltd, and Carrier Global Corp's $13.2 billion deal for the climate solutions unit of Germany's Viessmann Group.The S&P 500 Index has risen 14.5 per cent since the start of the year. Shares of companies that have lagged in the market recovery have sometimes become acquisition targets, especially when they have major shareholders that can take them private, dealmakers say."Over the next six months, there’ll be a lot of share buybacks and a lot of controlling shareholders proposing buyouts of their publicly listed subsidiaries – both are indicators of beliefs that markets will be stronger by this time next year, and neither typically require extraordinary financing," said Ethan Klingsberg, co-head of US M&A at Freshfields Bruckhaus Deringer LLP.Investment bankers and lawyers said the more challenging environment for leveraged buyouts made acquisitions difficult for private equity firms and contributed to the slump in activity. So far this year, private equity-led buyout volumes have slumped 59 per cent year-onyear to $196.66 billion.While the business of M&A was relatively insulated from the impact of the regional banking crisis, some advisors warned of potential ripple effects on broader availability of credit.The overall value of large deals declined by more than half from the same period last year. Not a single so-called mega-deal, which typically refers to transactions worth over $25 billion, was signed during the quarter. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News