Dealmaking roars back to life under Trump 2.0
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Merger Monday is back, with U.S. traded companies announcing more than $80 billion worth of deals to kick off the week.
Why it matters: While the stock market continues climbing a wall of worry about a potential AI bubble and further policy uncertainty, dealmaking looks overwhelmingly positive.
Driving the news: The total value of the deals on Monday hit $81.4 billion.
- American Water Works and Essential Utilities announced an all-stock merger worth $63 billion.
- Novartis struck an $12 billion deal to buy rare-disease biotechnology company Avidity Biosciences.
- Huntington Bancshares agreed to acquire Cadence Bank for $7.4 billion, the second-largest regional banking deal this month.
What they're saying: "You have lower regulation. That's what's happening," says Phil Pecsok, founder and CEO of Anacapa Advisors.
- He attributes the surge in dealmaking to interest rates coming down, pent-up demand for M&A, and the increasingly positive regulatory backdrop under the Trump administration.
- "You have a pro-business, business president," he says.
By the numbers: Global M&A volume jumped 43% in the third quarter from a year ago, led by large strategic transactions, according to Morgan Stanley.
- The bank expects deal activity to keep rising, by 32% this year and another 20% in 2026. It forecasts $7.8 trillion in total announced transaction volume by 2027, including buybacks and sponsor deals.
Zoom out: Dealmaking is also accelerating among private companies, although largely centered around AI, according to Crunchbase.
- AI companies captured nearly half of global venture funding in the third quarter, says Gené Teare, senior data editor at Crunchbase.
What to watch: If this wave of M&A is the opening act of a multiyear boom. Looser regulatory policy, rising corporate confidence, and wide open capital markets is a mix that Morgan Stanley says could keep dealmaking hot.
