FDI growth persists in 2024, but prospects for 2025 are uncertain
Cross-border mergers and acquisitions (M&A) activity experienced a 13% decline year-on-year, according to a recent report. However, despite this decrease in the number of deals, the total value of these transactions actually saw a 2% increase.
The report highlighted that even though the volume of cross-border M&A deals decreased, the total value of these transactions went up due to a few high-value deals. This indicates that while there were fewer deals taking place, the ones that did happen involved larger sums of money.
One of the reasons for the decline in the number of cross-border M&A deals could be attributed to the unpredictable economic environment. Companies may be hesitant to engage in such transactions due to uncertainty around global markets and trade conditions. This could lead to a sense of caution when it comes to pursuing cross-border M&A opportunities.
Another factor that may have influenced the decrease in cross-border M&A activity is the regulatory landscape. Regulatory hurdles can often complicate the process of cross-border mergers and acquisitions, leading companies to think twice before pursuing such transactions. The intricacies of different regulatory frameworks across countries can pose challenges that deter companies from engaging in cross-border M&A deals.
Despite the overall decrease in the number of cross-border M&A deals, the report points out that the total value of these transactions still increased. This suggests that even though companies may be cautious about engaging in cross-border M&A activity, there are still lucrative opportunities out there that are worth pursuing.
In conclusion, while cross-border M&A activity saw a decline in terms of the number of deals, the total value of these transactions rose. This indicates that although companies may be facing uncertainties and regulatory challenges in the current economic environment, they are still willing to engage in high-value cross-border M&A transactions when the opportunities present themselves.
