Based on the number of recent M&A deals and other financial indicators, the global market is recovering—and it’s here to stay—Mark Shafir, head of global mergers and acquisitions at Citigroup, told CNBC Monday.
“The market is clearly recovering, volumes are about 25 percent year-over-year,” added Shafir. “We’re seeing a much bigger numbers, and we think in the mega-deals, $10 billion and north, it will be up close. On a run-rate basis, it’s running about 40 percent over.”
Citi's Shafir added: “When you just look at the trends—cash on the books, valuations where they are, the credit markets are screaming—it just makes a lot of sense in the real recovery.”
Shafir said large deals, such as the NYSE Euronext-Deutsche Boerse merger announced this month, are an even better indicator of confidence than other factors. He called such deals “transformational.”
Deutsche Boerse plans to take over NYSE Euronext to create the world's largest exchange operator in a deal worth $10.2 billion.
Another such deal is health care REIT (real estate investment trust) Ventas’ acquisition on Monday of Nationwide Health properties for about $7 billion in stock.
As a result of the acquisition, reported the Los Angeles Times, the Chicago-based Ventas will double its portfolio to more than 1,300 properties, including senior housing facilities, medical office buildings, skilled-nursing facilities and continuing-care retirement communities. The deal also means that Ventas will become the largest healthcare REIT in the United States.
About the deal, CEO and chairwoman Debra Cafaro, told CNBC Monday: “We are in the deal business. We’ve done seven deals over the last couple of years. People know that we are an acquisitions company. That’s one of the things that’s created value for shareholders.”
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