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Megadeals Drive Takeover Activity Past $1 Trillion Mark For 2014


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HOLA441

http://www.bloomberg.com/news/2014-04-28/megadeals-drive-takeover-activity-past-1-trillion-mark-for-2014.html

The value of takeovers announced in 2014 hit the $1 trillion mark yesterday, reaching that level at the fastest pace in seven years.

That threshold was crossed 54 days earlier than in 2013, after more than $300 billion in purchases were announced by companies from Valeant Pharmaceuticals International Inc. (VRX) to Alibaba Group Holding Ltd. in April, data compiled by Bloomberg show. That total excludes another $175 billion in proposals by Pfizer Inc., Mylan Inc. and others that have been rebuffed or are still awaiting final agreements.

Chief executive officers, with more than $4 trillion in cash on company balance sheets globally, have gone from being wary of making big deals to facing pressure to strike deals or be beat to opportunities by their major rivals, said Michael Shaoul at Marketfield Asset Management LLC.

Once you've hit a certain size the only way to increase market share/profit is to take over rivals or diversify into new areas by takeovers

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Just looking at my old trade area this morning, I looked up where I used to work.

The highy innovative products are now dust..the Company has been bought and sold and is now part of an international conglomerate selling a fair range overall, but the individual talents that were abundant when I worked there are gone.

Then I looked at an area I could be interested in getting going in...googling this aspect again showed huge firms with mega investments offering services at prices a small firm just cant compete with.

Watching the Manchester restaurant challenge, one can see that to get competitive from the get go, needs large amounts of cash...3million in the case of one restaurant...

it seems that markets are now dissappearing in a competitive morass of global cash rich megacorps...buying everything up.

I feel quite discouraged this morning.

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