Corona pushes M&A deals in Australia to a record level

Australia had the largest volume of M&A deals recorded on a quarterly basis this quarter, which began in July, with companies feeling pressure from missed opportunities and rising asset prices as the start-up Post-coronavirus economic recovery, according to investment bank Morgan Stanley.

M&A deals targeting Australian companies since the beginning of July have reached A$70.9 billion ($50.9 billion), the highest quarterly level since 1998, according to data Compiled by Bloomberg, and reviewed by Al-Arabiya.net.

The record amount was boosted on Monday as Spark Infrastructure Group approved a takeover bid from a consortium led by KKR & Co, valuing the energy infrastructure company at 3.7 billion dollars.

The inverse relationship between concerns about the potential effects of COVID-19 restrictions and rising geopolitical tensions with China and deal size challenges the inverse relationship between concerns about the potential effects of COVID-19 restrictions.

According to Morgan Stanley, belief in the recovery is driven by confidence among consumers and businesses, government stimulus globally, and hope for successful vaccination campaigns, which has convinced executives that asset prices It will continue to rise.

Morgan Stanley Australia CEO Richard Wagner said in an interview: With this conviction, there is an urgent need to allocate capital and take action on opportunities now. He added, "We don't see any indication that activity is slowing down."

Wagner sees further consolidation coming in both the digital payments and energy sectors, with the biggest ever deal announced in Australia's history and the biggest tech deal globally. So far this year, the US fintech giant Square Inc's $29 billion acquisition of Buy Now Pay Later Ltd., on the same morning in August when Australian energy-producing company Santos unveiled its acquisition of its peer OilSearch Ltd. $9 billion.

More than half of the country's mergers and acquisitions this year consist of cross-border deals, according to data compiled by Bloomberg, even as Australia finds itself facing a resurgence. Corona Virus Pandemic.

With nearly two-thirds of the year to go and nearly $90 billion of deals targeting already listed Australian assets, 2021 could easily surpass the record year 2015 amounting to $93 billion.