Wall Street is gearing up for a surge in mergers and acquisitions as Donald Trump’s re-election signals a shift toward deregulation.
Trump’s promises to loosen regulatory constraints have already boosted the Dow Jones to new heights, particularly lifting stocks in banking, energy, and cryptocurrency sectors.
Investment powerhouse Goldman Sachs forecasts a 20% increase in M&A activity next year, pointing to Trump’s expected easing of antitrust restrictions. In a recent report, Goldman noted a dip in M&A deals by 15% this year compared to 2023, suggesting the potential for a swift rebound in 2025 as the new administration prioritizes business-friendly policies, the New York Post reported.
The anticipated regulatory rollback could benefit industries hampered by the Biden administration’s strict antitrust stance. Federal Trade Commission (FTC) Chair Lina Khan had actively blocked major mergers, including Kroger’s attempted acquisition of Albertsons and tech giants like Amazon facing significant regulatory actions. However, analysts predict these deals may now find support under a Trump-led government.
Corporate leaders are already responding optimistically. David Zaslav, CEO of Warner Bros. Discovery, expressed hope for accelerated industry consolidation, citing a shift in the regulatory landscape that may encourage growth and streamline operations. Stocks in companies with pending mergers, including Kroger, Albertsons, and Tapestry, have already seen noticeable gains in response to Trump’s win.
Another critical move expected under Trump’s administration involves the Securities and Exchange Commission (SEC). Trump has pledged to replace SEC Chair Gary Gensler, a longtime adversary of the cryptocurrency industry. Dan Gallagher, Robinhood’s chief legal officer, is reportedly being considered as Gensler’s successor, a change that may ease constraints on digital currency firms.
With Wall Street buzzing about the potential for expanded dealmaking, the business world awaits the incoming administration’s impact on regulatory policies and M&A opportunities, likely setting the tone for significant market shifts in 2025.
Written with the assistance of artificial intelligence.