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By David POLAK, Equity Investment Director at Capital Group
A wave of MA has swept the business world, with global transaction value surpassing $2 trillion for the fourth consecutive year in 2018. This consolidation has placed more revenue and market power in fewer hands in a wide range of industries, including health care, technology and media. Low interest rates, the search for growth and innovation, and opportunities to eliminate redundant costs have powered the deal-making.
On the surface, this consolidation might appear to be an unalloyed good for the companies that remain. After all, consolidation reduces the number of competitors in an industry, which should increase pricing power,...
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