This year a nasty hangover is setting in — and $400 billion worth of these mergers have already been undone, according to The New York Times. Deals are collapsing due to antitrust concerns, tightened rules on cross-border mergers and buyer’s remorse, according to the report, which names the failed $6.3 billion dealings between Staples and Office Depot, the collapsed $35 billion Halliburton-Baker Hughes merger and the doomed $152 billion Pfizer-Allergan agreement.
“You’re definitely seeing a hangover from the M&A party from 2015,” Aly El Hamamsy, a partner in Cadwalader, Wickersham & Taft’s mergers-and-acquisitions group, told The New York Times. “Things will stay interesting for a few months at least.”
The rapid failures of these mega-mergers has created a skeptical market about pending deals, putting more focus on negotiations, according to the report. However, it likely won’t slow down transactions too much, according to the report. And after a $40 billion day of mega-mergers last month, it seems the healthcare industry may be taking a hair-of-the-dog approach to M&A this year.
More articles on transactions and valuation:
Texas Health Resources adds 27 freestanding ERs to network
UVM Health Network adds another NY hospital
St. Vincent Healthcare partners with University of Utah School of Medicine, children’s hospital
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.