(Nov 4): The current environment for large mergers and acquisitions (M&A) is quite “constructive” for 2026 and 2027, particularly in the US, according to the chief executive officer of Goldman Sachs Group Inc.
The New York-based investment bank sees a “tremendous backlog of significant consolidating situations”, David Solomon said on Tuesday in an interview with Bloomberg Television in Hong Kong.
“CEOs are unleashed in believing that they have a chance in doing things to advance their positions, to advance their scale,” he said.
Solomon, as well as the top leaders of several Wall Street powerhouses, are in Hong Kong to attend the Chinese city’s annual top-level financial summit. The gathering comes amid a boom in deals in the city, in part as global investors are starting to look at China again to invest.
Solomon said that appetite for China is bigger than 12 months ago after valuations became attractive, though there is still a reluctance.
Foreign direct investment in “China has come down and I think one of the big questions is, until we understand the trade and the geopolitical landscape, it’s harder to see significant shifts back to higher levels”, he said. “But for the moment, those flows are making for a better IPO market.”
See also: SoftBank explored potential takeover of US chipmaker Marvell earlier this year — Bloomberg
Goldman posted record third-quarter revenue earlier in October, bolstered by a rise in fees from M&A. The bank also told its 48,300 employees that it would cut more jobs this year as artificial intelligence improves efficiency.
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