Tepid M&As due to debt obligations
Owing to the corporates’ debt distress and the economic slowdown fears, merger and acquisitions seem to have become lukewarm this year. Weak corporate governance and a huge liquidity crunch in 2019 also impacted the country’s M&As.
Across the globe, too, deals were hard to materialise due to various factors including uncertainties caused by the US–China trade war, which left many investors in a wait-and-watch mode.
“We expect total M&A to show resilience in 2020, at USD 44.6 billion, and to speed up from 2021 thanks to business-friendly reforms and a more favourable global backdrop,” Baker McKenzie, leading law firm, said in a report.