Mergers and Aquisitions Essay Example | Topics and Well Written Essays - 1500 words - 1

Mergers and Aquisitions - Essay Example This is influenced by the fact that in situational contexts where the market economies are in a funk, firms do not engage in much dealing and trade. Consequently, critique provides that the presence and/ or increase of either activities, provides a positive sign of market confidence. Importantly, is the fact both inert human capacity, as well as ‘investor psychology’ are critical towards ensuring brighter futures. This is essentially what leads to the presence of both economic aspects; aimed at alleviating and bettering existing contexts in the international economic arena. In the U.S., just like other international contexts, mergers and/ or acquisitions, from the late 20th century onwards, experienced an upward surge. This is best represented by mega mergers or acquisitions i.e. Spectra Energy Corp (SE) acquisition by Spectra Energy Partners (SEP), which is the paper’s focus; Tokyo Electronic (TOELY) and Applied Materials (AMAT); US Airways (LCC) acquisition by American Airlines (AAMRQ), and Life Technologies (LIFE) acquisition by Thermo Fisher Scientific (TMO) amongst others in the global arena (InvestorPlace, 2013). The year 2013, though having notched amongst the largest of mergers and acquisitions within recorded human history, it was hardly a year of deal activity; though this did smartly pick up. During the first 9 months, the total volume of U.S. mergers and acquisitions did total to US$865.1 billion; attesting to the great influences, impacts and effects of such economic activities within the global economic sector. Accordingly, Dealogic (a global economic consortium) in its – Dealogic M&A Review [First Nine Months 2013 Final Results Report] – portrays that this figure was a 39% increase, over the same period the previous year. Subsequently, a number of deals did make mega splashes, while others were conducted quietly; with all being influential in the eventual recovery in M&A. such high amounts of monies spent on mergers