Global deal activity disappoints, M&A revenue falls

NEW YORK: A global trade war kicked off by US President Donald Trump and the ensuing market turmoil soured bankers' predictions for a robust year to a blockbuster year for deals on Wall Street.

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First-quarter mergers and acquisition (M&A) volume rose 19.61 to $984.38 billion from year-ago period, Dealogic data compiled for Reuters showed. The rise was almost entirely due to a solid Pacific region, where the largest state-led deals announced by China on Sunday and a ports deal driven by Trump helped nearly double M&A volume from last year.

Bankers worldwide are paring back deals and generating less revenue. In the US, which accounts for almost half of global M&A transaction, first-quarter volume slipped 13 to $436.56 billion. A volatile IPO activity increased, a prolonged trade war will make it less palatable in the future, said Matt Whritter at Wellington Private Investments.

“Could they go public? Sure anybody can go public at any time, if the fundamentals are good. But is it worth the brain damage and potential price that you go public at? Probably not,” Whritter said.