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MERGERS & ACQUISITIONS TO HIT MAY RECORD

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MERGERS & ACQUISITIONS TO HIT MAY RECORD

June 1 2015, 07.43am GMT

STOCK.com

According to a report released on Thursday, mergers and acquisitions (M&A) announced in the US in May have already broken a record which was set in May 2007.

According to Dealogic data, already, $241.6 billions deals have already been announced which has already surpassed the $225.8 billion record set in May 2007.

Interestingly, January 2000 is ranked in 3rd place after $212.7 billion deals were announced.

M&A deals announced in the telecoms and technology sectors top the list. The recent merger announced last week is the sale of Broadcom Corp (BRCM, +1.07%) to its closest rival Avago Technologies Ltd. (AVGO) for $37 billion in stock and cash.

In a report released by PricewaterhouseCoopers, the tech sector has no intentions of stopping any time soon. This multinational service lender also said that while there is no guarantee of a record breaking year like 2014, 2015 seems to be on the right track.

According to Dealogic, of the $241.6 billion deals announced in May, $92.2 billion, or 38 percent accounts for telecoms which is then closely followed by $49.2 billion, or 20% of the total, on technology deals announced. In 3rd and 4th place, we have healthcare and utility and energy respectively with $33.8 billion and $19.5 billion in deals announced.

Meanwhile, another deal may be on the table after the New York Post reported on Thursday that Intel Corp (INTC, +1.32%) was in the process of buying Altera Corp (ALTR, +4.00%) for a figure close to $17 billion. The paper further cited that Intel was ready to pay as high as $54 a share which is 15% up from the $46.97 closing price posted on Thursday. If the deal actually materializes, it will be the tech giant’s biggest ever.

Elsewhere in May, Charter Communications (CHTR, +1.51%) merged with Time Warner Cable Inc. (TWC, -0.82%) for $55 billion. Added to this, after the merger, Charter Communications also bought Bright House Networks for $10.4 billion. Verizon Communications Inc. (VZ, -0.20%) is allegedly buying AOL Inc. (AOL, -0.12%) in a deal worth $4.4 billion.

The retail sector was also not left behind with Ascena Retail Group Inc. (ASNA, -1.99%) buying Ann Inc (ANN, -047%) for $2.2 billion worth of cash and stock.

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