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UK 'should prepare for wave of M&A activity'
Business analysts are predicting a sharp rise in American deal-makers targeting British firms following Kraft's high-profile capture of Cadbury.
The US food and beverage giant's £11.5 billion offer was approved by Cadbury's shareholders yesterday (January 19th), bringing a takeover bid that began in September 2009 to conclusion. Many experts believe that the deal could signal a fresh wave of mergers and acquisitions (M&A) involving American and UK businesses.
Hedge fund GLG Capital told the Daily Telegraph that Kraft's success is likely to breed confidence among US organisations, with many firms in the country enjoying their strongest balance sheets in over 40 years.
Meanwhile, the majority of British corporations are still struggling to recover from the recession and the effects of a weak sterling.
An article in the Los Angeles Times has also predicted an upsurge in M&A activity, citing the Kraft deal as evidence that "the nascent economic rebound is gaining steam" in the US.