Business Maverick: Elon Musk’s Twitter Fight Points to M&A Experts’ Big Fear: Collapsing Deals

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A slowdown in mergers and acquisitions is coming this quarter as turmoil in the stock market pressures pending takeovers and raises the risks of more deals collapsing, like Elon Musk’s purchase of Twitter Inc.

While the Musk-Twitter fight has the market transfixed, a bigger issue for the M&A industry is the generally challenging backdrop for deals. With volatility continuing and interest rates rising, a slowdown is expected in the third quarter with the possibility of more transactions being pulled, a Bloomberg News survey of 16 M&A trading desks, fund managers and analysts, found. They named Seagen Inc. as the most likely takeover candidate in the next three months.

Among the deals considered most at risk were Nielsen Holdings Plc, Citrix Systems Inc and Tenneco Inc, survey respondents said. They are in the most bruised corner of the tech sector and have private equity buyers, who tend to be more focused on financials than strategic buyers, who are more concerned about regulatory and antitrust issues.

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