Citi: Corporates Pick Up ‘Gems of Companies' in Dealmaking Revival

Core Viewpoint - The new regulatory regime under the Trump administration is prompting U.S. companies to seek overseas deals, reflecting a post-election enthusiasm for a revival in dealmaking [1][2]. Group 1: Regulatory Environment - The anticipated rollback of regulations by the Trump administration is influencing U.S. companies to explore international opportunities [2][5]. - The previous administration implemented significantly more regulations, which created extensive paperwork and hindered economic momentum [6]. Group 2: Mergers and Acquisitions Activity - Mergers and acquisitions (M&A) value increased by 11% in 2024, contrasting with 2022 when dealmaking fell below the $3 trillion mark for the first time in a decade [4]. - Megadeals, defined as those worth over $5 billion, surged by 19%, despite a decline in the total number of deals [4]. - There is a growing interest from U.S. companies and private equity in acquiring undervalued international firms, referred to as "gems" [3].