Company mergers and acquisitions posted unprecedented growth in 2021

Company mergers and acquisitions posted unprecedented growth in 2021

“While there remains a lot of optimism about the strength of 2022, headwinds such as higher interest rates, rising inflation, and geopolitical conflicts could present challenges to closing deals this year,” commented John Procaccini, partner of PwC Argentina, in a statement. .

In the same vein, he added that “greater volatility is observed in the financial markets, more global supply interruptions and more fiscal debt, since the consequences of the pandemic continue to impact throughout the world.”

According to the analysis, the activity of mergers and acquisitions is in the process of maturing, especially in companies within the energy, public services and resources sector, which led them to divest themselves of assets with a strong dependence on carbon, considering them to be largely reactive to regulatory and shareholder pressure, as well as for environmental, social and corporate governance reasons.

“It is anticipated that chemical companies will seek to secure sources of raw material located closer to their production assets through targeted mergers and acquisitions. Infrastructure funds will also continue to allocate large amounts of capital to power and utility services. assets, to the assets of oil and gas transportation and storage operations, and to renewable energies,” the report pointed out.

The work reveals the global activity of transactions in six industries: consumer markets; energy, utilities and resources; financial services; health industries; automotive and industrial manufacturing; and technology, media and telecommunications.

Source: Ambito

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