US corporations orchestrated deals worth more than £25 billion on Monday, showcasing the most substantial surge in dealmaking confidence since Donald Trump’s electoral triumph. The day witnessed four significant transactions, headlined by Omnicom’s £9.5 billion all-share acquisition of advertising giant Interpublic, alongside Apollo Global-owned packaging manufacturer Novolex’s £5.1 billion takeover of Pactiv Evergreen.
The scale and breadth of this week’s “Merger Monday” activity signals a pivotal shift in US executive sentiment, with many anticipating a more merger-friendly landscape under Trump’s administration compared to Joe Biden’s tenure. Scott Barshay of Paul Weiss, a prominent Wall Street dealmaker, noted unprecedented client enthusiasm, with previously hesitant parties now actively pursuing transactions.
Global merger and acquisition activity in 2024 has already outpaced 2023’s figures, when annual deal volume dropped below £2.2 trillion for the first time in over a decade. Current year-to-date activity stands at £2.1 trillion, marking a 10 per cent increase compared to the same period last year, according to London Stock Exchange data.
The private equity sector has witnessed particular vigour, with Chicago-based GTCR announcing the sale of insurance brokerage AssuredPartners to Arthur J Gallagher for £9.8 billion. The transaction represents one of the year’s largest asset disposals, with GTCR investors expected to realise approximately 2.5 times their original equity investment.
This renewed market optimism coincides with a surge in credit fund investments, pushing risk premiums to near-historic lows and facilitating easier acquisition financing. The financing landscape has notably improved, with major banks demonstrating increased willingness to support large private equity-led transactions, evidenced by the £4.4 billion financing package arranged for Novolex’s recent acquisition.
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