Global cross-border mergers and acquisitions declined 14% year to date, driven by stricter antitrust enforcement and sustained high borrowing costs. Dealmakers are increasingly structuring agreements with contingent value rights to bridge valuation gaps.
Regulatory Hurdle Multiplication
Competition authorities in the United States and European Union have challenged 22 major cross-border deals in 2024. Terminated transactions resulted in over $1.2 billion in breakup fees paid by prospective acquirers.
Shift Toward Strategic Joint Ventures
In response to regulatory blockades, multinational corporations are shifting focus toward non-controlling equity stakes and strategic joint ventures to gain international market access without triggering full merger reviews.