Wall Street M&A Revitalized... 4100 Trillion Won in Deals This Year

$35 Billion M&A Announced on the 9th
$2.9 Trillion M&A Scale This Year
Resolution of Election Uncertainty and Trump Effect

The U.S. presidential election ended with the victory of President-elect Donald Trump, revitalizing Wall Street's mergers and acquisitions (M&A) market. This is interpreted as a result of growing expectations that the incoming Trump administration, set to take office next year, will create a more business-friendly environment for corporate M&A than the Joe Biden administration.

Major foreign media reported on the 9th (local time) that "U.S. companies completed $35 billion worth of M&A deals on this day alone, spreading an enthusiastic atmosphere in the industry after the election," noting that 'Merger Monday' has returned to Wall Street.

'Merger Monday' refers to the Wall Street practice where companies finalize major M&A deals over the weekend and announce them on Monday to boost stock prices. On this day, four M&A deals worth a total of $35 billion (approximately 50 trillion won) were announced, including the news that Omnicom, the world's third-largest advertising firm, would acquire its competitor Interpublic for $13.25 billion (about 19 trillion won). Additionally, reports emerged that Mondel?z International, the Oreo cookie manufacturer, was considering acquiring Hershey, a global chocolate maker.

Foreign media described this as "the most significant surge in deal confidence since Trump's election victory," adding, "The scale and diversity of this 'Merger Monday' enthusiasm is the clearest sign that many investors expect a more M&A-friendly environment under the Trump administration than under Biden, and that American executives' investment enthusiasm is beginning to recover."

The global M&A volume this year has already surpassed last year's. According to the London Stock Exchange Group (LSEG), the total M&A deal value so far this year has increased by 10% compared to the same period last year, reaching $2.9 trillion (approximately 4,153 trillion won). Last year, due to high interest rates, geopolitical uncertainties, and strict antitrust enforcement by the Biden administration, the annual M&A deal volume fell below $3 trillion for the first time in a decade.

Reuters Yonhap News

Scott Barshay, Head of Corporate at Paul Weiss, which holds the highest number of M&A deals on Wall Street, said, "Since the election results came out, the phone has been ringing nonstop," adding, "Clients who had been on the sidelines for the past four years suddenly want to jump into deals as they come. It feels like deal activity will significantly pick up moving forward." Anu Aiyengar, Global Head of M&A at JPMorgan, also pointed out that "the key to M&A is securing certainty," emphasizing that the resolution of uncertainty from the U.S. presidential election played a decisive role in the revival of M&A activity.

Although rosy prospects continue to emerge for the M&A market as Lina Khan, chair of the Federal Trade Commission (FTC), known for wielding the 'antitrust sword' during the Biden administration, is set to be replaced, some caution that it is too early to be complacent. This is because President-elect Trump has nominated Gail Slater, regarded as a 'hawk' in this field, to head the Department of Justice's antitrust division. Slater, a former economic advisor to Vice President-elect J.D. Vance, previously filed lawsuits blocking acquisitions such as the grocery retailer Whole Foods' purchase of Wild Oats.