Report: “Grexit” Could Impact Future M&A

A Wednesday morning conference call among European finance leaders to discuss Greece’s economic proposals will be the first step toward restarting negotiations. German Chancellor Angela Merkel has warned that “only a few days” remain to reach a deal, and Greece has promised to put its plans in writing. European Council President Donald Tusk yesterday said, "Until now I have avoided talking about deadlines. But tonight I have to say it loud and clear: the final deadline ends this week."

The uncertainty over Greece’s future has led to a great deal of unrest in world markets. The unknown consequences on global markets that a disorderly Grexit would have led to widespread fear and speculation about the potential impact. As reported by Bloomberg, a study by law firm Baker & McKenzie reveals that the fallout of a Greek exit from the euro could wipe out as much as $1.4T in future mergers and acquisitions. The report goes on to say that business confidence and investment would dampen as European equity prices drop lower and bond yields in countries like Spain and Italy rise. Global M&A activity has been very strong this year and is on pace to pass $3T for the first time since 2007. [Bloomberg]

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