Global executives cooling on deals amid trade uncertainties

October 08, 2018 - 3:22 am

LONDON (AP) — A leading adviser on international corporate deals says executives are cooling to the idea of mergers and acquisitions in the face of rising trade tensions.

In its half-yearly assessment of the mergers and acquisitions scene published Monday, EY says only 46 percent of executives around the world are planning to acquire in the next 12 months. That's down 10 percentage points from a year ago and marks the lowest appetite in four years.

The firm said ongoing trade discussions, notably between the U.S. and China, are weighing on sentiment. Uncertainty over Britain's looming exit from the European Union is also a factor behind the decline.

Steve Krouskos, a global vice chair at EY, said geopolitical, trade and tariff uncertainties have "finally caused some dealmakers to hit the pause button."

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