Mergers and acquisitions post strongest month for megadeals since June, 2019: S&P

Fueled by Broadcom Inc.’s AVGO, -1.39% $69.09 billion deal to buy VMware Inc. VMW, -1.68%,
the market for mergers and acquisitions booked seven $10 billion-plus deals, according to S&P Global Market Intelligence. May marked the most active month for large corporate purposes since June 2019, with nine M&A deals worth $10 billion or more. The Broadcom deal also stands out as the largest of 2022, just ahead of Microsoft Corp.’s MSFT, -0.65% $68.99 billion acquisition of Activision Blizzard Inc. ATVI, -0.58%,
which was announced in January. Thus far in the second quarter, the M&A market has seen 11 deals of $10 billion or larger announced, which already matches the deal count for the full second quarter of 2021. Those 11 deals in this year’s second quarter tipped the scales at $294.58 billion, the highest dollar total for a quarter since the second quarter of 2019, when 15 transactions larger than $10 billion weighed in at $409 billion, S&P said. The Financial Select SPDR ETF XLF, -1.67%,
an index of large banks that handle M&A deals, is down 9.8%, compared to a drop of 12.7% by the S&P 500 SPX, -0.86%.

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