Nov 21- U.S. manufacturers and transportation companies we rate have engaged in a number of mergers and acquisitions (M&A) this year, despite indications of an increasingly fragile economic recovery, according to a report published by Standard & Poor’s Ratings Services. The article is titled “U.S. Manufacturing And Transportation Companies Boost M&A, With Trends Varying Among Sectors.”
“Among capital goods borrowers, we’ve seen large acquisitions and noteworthy demergers,” said Standard & Poor’s credit analyst Dan Picciotto. “For automakers and their suppliers, activity has been more pronounced in acquisitions and joint ventures with acquirers looking to penetrate fast-growing emerging markets.”
For transportation companies we’ve seen sizable strategic mergers—to the point where large targets may be increasingly difficult to come by.
Standard & Poor’s is publishing reports on the M&A activity and outlook in the following areas: commodities and real estate; health care, consumer products, and retail; utilities; and manufacturing and transportation. Earlier reports in the series on mergers and acquisitions included “Global High-Tech M&A Activity Accelerates,” published Oct. 13, 2011, and “M&A Takes Center Stage In The U.S. Telecom And Cable Sectors,” published Sept. 26, 2011.
These articles are part of Standard & Poor’s “Reshuffling The Debt” series, which we launched at the beginning of 2011. The series rekindles the “Leveraging Of America” series of articles that we published in 2007, which commented on the large increases in nonfinancial corporate issuers’ debt leverage shortly before the Great Recession began.