A record-breaking record was reached on the aggregate value of the merger and acquisition transactions (M & A) reported by the global corporate sector in the period up to the last day of April of this year, which exceeded the peak before the financial crisis.
One of London’s leading market watchdogs, Dealogic, on Tuesday’s aggregate for Financial Times, London, said that in the first four months of 2018, a $ 1,677 billion new M & A transaction was agreed in the global corporate sector. This was a downturn in the record-breaking, record-breaking 1644 billion-dollar record for the last full year of the global financial crisis in the same period of 2007.
On the last day of April, that is, in a single day, a plan for corporate mergers and acquisitions totaling more than $ 120 billion became known.
These included the second and third largest UK food retail network, Sainsbury’s and Asda’s merger plan.
Sainsbury’s, on the basis of the proposed transaction, grants US $ 2.98 billion ($ 1070 billion) cash and $ 4.3 billion ($ 1540 billion) worth of shares to the American owner of Asda, Walmart, approved by the UK competition and market surveillance authority .
The united network will be the UK’s largest supermarket market with 31.4 percent stake.
Tesco, the leading market leader with a 27.6 percent share in British food retailing, is in second place in the case of licensing the transaction.
The deal was well received by investors: Sainsbury’s share jumped 21 percent on the London Stock Exchange (LSE) after the announcement of the deal, close to close to 15 percent at close of Monday.
The company’s paper in the early trading of LSE in the Tuesday continued to cost one and a half percent more.
High stock prices have an incentive to make M & A companies increasingly use their own equity as a currency.
According to Dealogic, 40 percent of mergers and acquisitions in the current year have a share component and in 14 percent of the transactions the acquirer pays exclusively shares.
This also means that the ratio of cash-only M & A transactions fell to three-year low.