As corporations have closed mergers and acquisitions (M&A) totaling more than $80 billion in a single day recently, some say the U.S. M&A market has entered a boom phase. In particular, analysts say the Donald Trump administration's deregulation stance has been a decisive driver of market activation.
According to the Financial Times (FT) on the 27th (local time), the three large M&A transactions announced in the United States that day totaled $81.4 billion (about 117 trillion won). First, U.S. water and wastewater corporations American Water Works and Essential Utilities announced a $63 billion (about 90 trillion won) merger, under which the two will provide water and wastewater treatment services to 4.7 million households across 17 states after combining. It is known that 69% of the new corporation's equity will be held by American Water Works shareholders.
Huntington Bancshares, a mid-sized bank, also said it would acquire Southern region lender Cadence Bank for $7.4 billion (about 11 trillion won) in an all-stock exchange. This follows Fifth Third Bank's $10.9 billion acquisition of mid-tier bank Comerica earlier this month, marking a second major regional bank merger, as banks show restructuring moves toward "economies of scale" amid intensifying competition and expense pressures.
On the 26th, the day before, a major transaction was also sealed in the pharmaceutical sector, with Swiss conglomerate Novartis agreeing to acquire bio corporation Avidity Biosciences for $11 billion (about 16 trillion won). With deals totaling more than $80 billion in just one day, some are saying so-called "Merger Monday" has returned. Merger Monday refers to the phenomenon in the U.S. financial market where M&A news between corporations is announced intensively on Mondays.
Experts believe the M&A market entered a full-fledged recovery in the fourth quarter as the Trump administration's deregulation stance, the trend of rate cuts, and certainty around tariff policy converged. Bill Anderson, an executive managing director at Evercore, said, "Large transactions are emerging across industries," and noted, "Strategic integration, a looser antitrust environment, and positive market reactions are driving transactions."
PJT Partners Chairman Paul Taubman said, "It is time for CEOs to execute acquisition lists they have long contemplated," adding, "A regulation-friendly environment combined with favorable capital-raising conditions has opened a good window to pursue M&A."
Earlier, President Trump actively continued approvals for restructurings and M&A after beginning his second term. Major investment banks are benefiting from the Trump administration's expedited merger approval process, and have welcomed tailwinds from regulatory authorities' promised easing of capital and supervisory requirements.
In fact, the size of M&A transactions in the third quarter this year is already estimated to have surpassed $1 trillion. According to data from London Stock Exchange Group, there have been more than 50 mega-transactions valued at $10 billion or more, raising the possibility that this year will be recorded as the biggest year for "mega deals (Mega Deal)" since 1995.
Still, experts are divided on whether to proceed cautiously or actively ride this wave. Taubman said, "Given that the number of transactions remains lower than a year earlier, excessive optimism should be avoided."
Jonathan Davis, a partner at Kirkland & Ellis, said, "For the first time in years, competitive instincts among corporations are reviving," and analyzed, "There is a spreading perception in the market that 'if you don't move now, you fall behind.'"