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A major merger is unlikely to occur in 2022 as Biden’s regulatory pressures are intensified by Reuters

© Reuters. File Photo: The Morgan Stanley logo will appear on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA on August 3, 2021. REUTERS / Andrew Kelly

New York (Reuters)-Large partnerships between listed companies will be off the table in 2022 as the Biden administration’s crackdown makes it increasingly difficult to secure regulatory approval for the combination, senior deal The manufacturer told the Reuters Next Conference.

Mergers and acquisitions are taking place at record paces this year. Companies are trying to transform themselves by breaking out of the pandemic and pursuing a transformative combination using cheap debt and bumper stock prices.

However, panelists working on The Great M & A Game warned that a collaborative push by U.S. regulators using the means needed to delay and kill transactions has hampered their ferocious appetite. bottom.

Robert Kindler, Vice Chairman and Global Head of M & A, said: Morgan Stanley (NYSE :), all transactions are “very scrutinized and people have no plans to trade if regulatory issues arise.”

Among the tactics deployed by regulatory agencies are widespread demands for information and other administrative obstacles, said Scott Barshay, chairman of the corporate division of law firm Paul Weiss.

He also referred to the Federal Trade Commission’s October announcement, reapplying the practice of seeking government approval for all transactions over the next decade, instead of waving through existing transactions. Said.

The Biden administration has expressed concern that unchecked transactions have contributed to the lack of vitality in key economic sectors and undermined consumer choice. Research into possible reforms of competition law is currently underway.

Kinderer, who predicted less than 10 transactions between listed companies worth more than $ 10 billion in 2022, said it had a chilling effect.

Barshay said private equity companies are likely to escape the same scrutiny given to transactions involving two listed companies, allowing buyout companies to continue large-scale acquisitions.

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A major merger is unlikely to occur in 2022 as Biden’s regulatory pressures are intensified by Reuters A major merger is unlikely to occur in 2022 as Biden’s regulatory pressures are intensified by Reuters

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