M&Ain focus in Credit Suisse’s buyer/seller list
KRAFT’S bid last week for UK confectionary giant Cadbury will be the first of many buyout attempts, according to a Credit Suisse analyst.
The analyst at the Swiss bank Richard Kersley yesterday sent out a table of companies that he believes are the most likely to buy a rival and of those companies that look most like targets in the same sector.
The snapshot provides a useful guide to forthcoming consolidation, as it is likely many rivals will do deals in the coming months, with those who have handled the recession well looking to make acquisitions.
In a note accompanying the table, Kersley said key US indicators suggest mergers & acquisitions (M&A) activity is set to surge “right about now”.
Sectors like banks, building materials and insurance in particular will see buyouts, encouraged by the “good values” of rivals whose prices have collapsed in the global financial crisis.
Within Europe, companies’ financial positions differ dramatically between the UK and the continent. Kersley said: “The former is still indebted but the latter has a record financial surplus, making it the more likely source of activity.”