MERGERS AND acquisitions, stalled by the covid-19 pandemic, is likely to accelerate in the US, as a Joe Biden presidency is expected to provide a predictable economic and regulatory environment, bankers said. The M&A process would be aided by the prospect of the US Senate controlled by the Republicans, who would curb Biden’s interventionist policies. Republicans holding a majority in the Senate could block much of Biden’s legislative and spending agenda, causing gridlocks, which in their own way have a stabilizing effect. A full control of the US Congress by the Democrats would have allowed Biden to give effect to his pre-election pledge to raise capital gains tax, making it more expensive for investors to cash out. According to data provider Refinitiv, deal volume globally is down 12% year-to-date to $2.84 trillion, while the same involving US companies being acquired has fallen 32% to $1.07 trillion.
