A new joint report from J.P. Morgan and Thomson Reuters examines which industry sectors are likely to see increased mergers and acquisitions activity as world economies begin to emerge from the recession.
The report, called “Deal making in high definition,” identifies four primary areas it says are likely to experience M&A growth: consumer durables and apparel; telecommunications, media and technology; insurance; and food, beverages and tobacco.
The consumer durables and apparel sector has seen 12 months of earnings per share growth of more than 113 percent, with strong convertible and corporate bond issuance, the report said. It also noted that corporate bond issuance in the media sector during the first nine months of the year already exceeds volumes from the last two years at $40.8 billion—almost double 2008 figures. Earnings in the information technology sector, according to the report, are expected to grow by 36 percent over the next year with emerging Asia and developed Europe offering the best prospects. And the insurance sector, the report said, is likely to see regulatory changes that will promote consolidation.
The report is available at Online.thomsonreuters.com/DealsIntelligence/. The site requires free registration.