Global Mergers, Acquisitions Almost Doubles In First Nine Months Of 2005

The value of worldwide mergers and acquisitions increased by almost 50% in the first nine months of 2005 compared with the same period of 2004, a study by financial news organization Thomson Financial showed on Oct. 3.

Merger and acquisition (M and A) activity reached US$1.88 trillion dollars (1.58 trillion euros) during the period, an increase of 48%, due to an increase in corporate profits and reserves of liquid assets, as well as greater activity from hedge funds.

The most significant growth was in Europe, where M&A activity rose by 75% to $697.28 billion. But the U.S. market, with 32.2% growth, remained the biggest as bankers put together deals worth a total $872 billion.

Copyright Agence France-Presse, 2005