Business leaders at the World Economic Forum see an increase in mergers and acquisitions activity as industries consolidate in response to the recession, according to Reuters. Conference attendees roundly noted that tough economic times generally spur a move towards consolidation of markets that have suffered particularly during the economic downturn.
Despite the global tightening of the credit markets, business leaders in attendance at theWorld Economic Forum forecast that efficiency opportunities could be gleaned from the synergy of M&A actions.
Worldwide mergers dropped 30 percent by volume in 2008, according to data from Thomson Reuters.
“We’re going to see further waves of consolidation as weaker players are taken over by stronger players,” said Mark Foster, global head of management consulting at Accenture, who predicted an M&A surge in the consumer goods, pharmaceuticals, and communications industries.
“The big sector, obviously, in terms of restructuring, is financial services,” said Blackstone Group senior managing director John Studzinski. “There is also an enormous amount of work in energy and infrastructure…I think that trend will continue.”
The big M&A deal so far in 2009 has been Pfizer’s acquisition of Wyeth, as the pharmaceutical giant announced earlier in the week a $68 billion bid for the smaller company.