Global firm forecasts boost in Nordic deals

Linklaters regional deal watch predicts increase in sizeable transactions

Stockholm: big ticket deals returning to Nordic market?

Five out of six major Nordic corporations are anticipating a limited increase in mergers and acquisitions activity over the next 12 months, with some companies anticipating sizeable transactions surpassing the €500 million mark, according to research from a magic circle law firm.

London-based Linklaters released its ‘M&A Barometer’ today, forecasting a stable market in the Nordic region for the next 12 months as well as making several optimistic predictions.

High value

The key figures show that last year’s healthy increase in M&A activity looks set to continue, with a significant boost being that many companies are considering high value transactions.

However, that optimism is tempered by some cautionary figures, such as only 5 per cent of respondents expecting ‘considerably’ more activity compared with the last 12 months. The corresponding figure in last year’s survey was 21 per cent.

The uncertain financial climate still appears to be at the forefront of major companies’ thinking regarding to M&A deals, as several reported the postponement of large projects or least significant delays. An additional driving factor behind acquisition strategies suggests a shift in focus from developing new markets to a more prudent approach of working on existing product portfolios.

Core markets

Linklaters’ head of corporate and M&A at the firm’s Stockholm office, commented on the research, saying it ‘indicates that companies will continue to do transactions and we do expect well-targeted strategic deals to continue to happen. In a low-growth environment, companies will seek expansion through acquisitions in their core markets and seize opportunities when they arise.’

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