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Dealmakers Face $50 Billion M&A Freeze Amid Mounting Troubles

Published by: dailynews
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Dealmakers brave enough to attempt big acquisitions are increasingly running into difficulties, as transactions get held up by everything from government haggling to regulatory worries.

In just the last week, news emerged of about $50 billion of deals running into trouble. Bloomberg News reported Wednesday that Chinese white goods giant Midea Group Co. has dropped its pursuit of Electrolux AB, the $3.7 billion maker of Frigidaire appliances. It wasn’t able to fulfill demands for regulatory guarantees at a time of rising protectionism.

SES SA on Thursday confirmed a Bloomberg News report that it’s ended talks on a potential merger with Intelsat that would have formed a dominant satellite operator valued at more than $10 billion including debt. They couldn’t agree on terms of a deal and future strategy, people with knowledge of the matter said, and the transaction was always complicated by the Luxembourg government’s big stake in SES.

Read the full story on Bloomberg here.