CASH-RICH private equity firms and cheap debt are set to extend this year’s boom in mergers and acquisitions (M&As) in the fourth quarter, but regulatory pushback has sent a ripple of unease into the market.
A survey of 16 United States-based merger-arbitrage desks, traders, analysts and fund managers revealed mounting concern about heightened US antitrust regulations after authorities challenged recent deals and a leadership change at the Federal Trade Commission (FTC) may lead to more deadlocks. Merger arbitrage spreads have widened recently, reflecting the risk around deals closing.