Global M&A to hit $3 trillion in 2011: survey

Volumes could hit 2007 levels.

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mergeA story posted on Reuters today notes that global mergers and acquisitions are set to skyrocket next year. Is this evidence that firms in some sectors are finally starting to spend the large piles of cash they’ve been sitting on for the past couple of years? See the story below.

(Reuters) – Global mergers and acquisitions (M&A) may jump more than a third in 2011 to the highest level since the credit crisis, driven by a big pick-up in real estate and financial services deals, a survey found.

M&A volumes will surpass $3 trillion next year, the highest since 2007’s $4.28 trillion, according to a poll of senior executives by Thomson Reuters and Freeman, a consultancy.

The poll, out on Monday, cited pressure to keep up with competitors as one of the biggest strategic reasons for deals.

It canvassed 150 executives at firms ranging from $200 billion global conglomerates to small regional businesses, with almost two-thirds of respondents based in the United States.

Almost half of survey participants see emerging markets as the most attractive region for acquisitions next year.

Equity capital markets (ECM) issuance will also increase, as media and real estate firms drive 2011 equity issuance to $902 billion, a 21 percent rise on 2010.

Sales of new corporate bonds will rise 14 percent to $1.28 trillion next year, according to the survey.

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