Dealcast: The M&A Podcast

The US Federal Reserve might not have been thinking of Brazil when it cut interest rates by half a point in September, but the home of Pelé has been an unlikely beneficiary of US dovishness.

Lower interest rates meant US investors turned their attention to emerging markets equities and businesses. The result was a carnival of investment in Brazil just as the country was continuing to inch its way to investment grade status.

Deal activity boomed throughout 3Q24. The increasingly liberalized sector of sports betting is becoming a hot market in a soccer mad nation. One company seeking to score big returns here is Flutter Entertainment [NYSE:FLUT, LON:FLTR] which bought a majority stake in Betnacional operator NSX Group for USD 350m just before the Fed decision.

https://mergermarket.ionanalytics.com/content/1003914075

Thiago Barrozo, Mergermarket’s Latin American editor, joins Dealcast host Julie-Anna Needham to discuss why Brazilian dealmakers are in such a good mood, despite terrible flooding earlier in the year.

• Why will upcoming tax reforms continue to help the market?
• What are the hottest areas in Brazilian tech?
• Why is the sports betting liberalization such a big deal?

All this and more in this week’s Dealcast

French private equity experts are facing performance anxiety as 2024 turns into 2025 at a time when PE exits have plummeted to their lowest level since 2013.

At the same time, there is a fierce fight for quality assets, with trade buyers providing stiff competition to sponsors. And, to keep everyone on their toes, the exit market remains dogged by political uncertainty as a result of a hung parliament.

A consultancy called Astek, which is backed by ICG, is an example of a PE-backed company with ambitious plans, despite the headwinds. It wants to carry out half a dozen bolt-on dealss per year over the 2025-2027.

https://mergermarket.ionanalytics.com/content/1003975431

Arezki Yaiche, Mergermarket’s French bureau chief, and senior reporter Myriam Mariotte join Dealcast host Julie-Anna Needham to discuss why French exits remain so tricky.

• Why are dealmakers finding it hard to move beyond their pre-election wait-and-see stance?
• Why are regulatory issues so important in France?
• How have Mergermarket’s French team begun to take the Pulse of the market?

https://mergermarket.ionanalytics.com/content/1003960050

All this and more in this week’s Dealcast

The Federal Reserve’s bumper half-point rate cut in September has opened an unexpected pre-election window for sponsors seeking to list portfolio companies in an IPO.

Sponsors Carlyle Group [NASDAQ: CG] and Partners Group [SWX: PGHN] saw a window following the Fed cut and ran through it without a second thought to the next occupant of the White House, ahead of a 50/50 Presidential election on 5 November.

Mergermarket's North American equity capital markets (ECM) senior reporter Cristiano Dalla Bona joins Dealcast host Julie-Anna Needham to discuss why the sponsors were able to shake off the political risks.

• Will Platinum Equity follow Carlyle Group and Partners Group’s example with an IPO for Ingram Micro?
• What was the mood in the US ECM like before the Fed rate cut?
• How will the IPO market react to different outlooks in 2025 depending on who wins the election?

In this episode, we talk about logistics in Latin America, where Brazil is taking the top position in M&A, with strong consolidation. Despite many challenges yet to be faced in the region, the South American nation is even taking advantage of nearshoring opportunities in Mexico.

Joining Julie-Anna Needham is Priscilla Murphy, Mergermarket editor for Latin America based in Rio de Janeiro

In this episode we discuss the potential impact of the US presidential election on the oil and gas sector. A second Donald Trump administration is generally expected to be friendlier to the sector, with most eyes set on who could be named chair of the Federal Trade Commission, which has recently increased its scrutiny of oil and gas deals. However, a Kamala Harris administration, and its possible restrictions of drilling in federal land, could ironically lead to more oil and gas M&A.

Joining Julie-Anna Needham is Serafina Smith, who is a Mergermarket reporter in New York, and Carlos Martinez, who is Canada editor for Mergermarket.

Japanese dealmakers have high hopes that the year will outperform 2023, based on solid volumes in the year to date. This is driven by a number of factors, including new government-led guidelines. We also look at an unusual case study - the ongoing Fuji Soft deal - as it continues to unfold.

Joining Julie-Anna Needham is Raiha Mahmoud, senior reporter with Mergermarket

In this episode we’re heading to Asia Pacific region to delve into how APAC equity capital market has been performing with changing themes. When shall we expect for a HK/China deals recovery? Will the IPO boom in India last? What's the IPO outlook for the rest of 2024? Joining Julie-Anna Needham is Yiqing Wang who is the Managing Editor for Mergermarket APAC and Perris Lee, who is the Asia ECM Editorial Director for Mergermarket.

In this episode, we look at the post-summer pipeline for deals in Europe. The mood among dealmakers is cautiously optimistic in anticipation of interest rates continuing to fall.

Joining Julie-Anna Needham is Rupert Cocke, senior editor for Mergermarket based in Barcelona.

In this episode we look at Latin America’s deal forecast for the second half of the year. On the spotlight, the region’s two biggest economies and a key question: why is Mexico more optimistic than Brazil?

Joining Julie-Anna Needham is Thiago Barrozo, Latin America editor for Mergermarket based in Sao Paulo.

In this episode we look at how the tortuous three year saga to take a US listed Chinese company private ended successfully - despite the efforts of its own CEO. Joining J-A is Ed Vinales a Hong Kong based Public Markets M&A Editor.