Deal Dispatch: US M&A Is Quiet, But Abroad? Volume Is Spiking

These past three months were not what U.S. dealmakers wanted or expected.

As of April 3, transaction tracker Dealogic showed zero percent growth in U.S.-based M&A volume compared to last year’s first quarter.

Elsewhere? Volume is spiking triple digits.

• The Middle East and Africa combined are seeing 123% growth in M&A.
• Japan: 105%
• Asia: 103%

Deal volume is also up in Canada, Europe and Australia. Only in Latin America is it in the red, with barely a peep coming from the U.S.

For those keeping track of who correctly predicted this downtrend, don’t look to Bank of America. After Election Day, the firm’s analysts boldly predicted that the then-incoming Trump administration would remove Federal Trade Commission chair Lina Khan and, presto, the antitrust roadblocks for M&A activity would be removed.

Those analysts were wrong. Just 10 days after Trump’s inauguration, the U.S. Department of Justice sued to block Hewlett Packard Enterprise‘s HPE $14 billion deal to acquire networking gear maker Juniper Networks. In March, Surmodics, Inc. SRDX saw its stock price fall after the FTC challenged a proposed acquisition by private equity firm GTCR LLC.

Those BofA analysts also forgot that the previous Trump administration was not particularly lenient regarding consolidation. AT&T and Time Warner; Sinclair and Tribune Media; Broadcom and Qualcomm; DraftKings and FanDuel — all blocked.

On the shiny side, gold-related M&A deals have increased, but transaction sizes are much smaller, Benzinga’s Stjepan Kalinic wrote this week.

See Also: Trump Urges Immediate Rate Cuts, Powell Says It’s ‘Too Soon’ As Tariffs Will Likely Drive Inflation

New On The Block

• I Squared Capital is considering selling its European trailer-leasing business, TIP Group, which could be valued at over €3 billion ($3.2 billion). The Miami-based firm is consulting advisers but has not yet launched a formal sale process, Bloomberg reports. Based in Amsterdam, TIP Group may attract interest from infrastructure funds and industry peers. I Squared acquired the company in 2018 from HNA Group and has since expanded it through acquisitions, including Trailer Wizards in Canada and Eurotrail UK Ltd. The company was rebranded as TIP Group in 2022.

• Bowmark Capital is working with Arma Partners on a potential sale of workforce management software firm Totalmobile, which could be valued at over £500 million ($649 million). A formal sale process may start later this year, according to Bloomberg. Totalmobile, which provides field service management software, could attract interest from private equity firms and industry players. Bowmark acquired the company in 2020, and deliberations on the sale are still in the early stages.

Updates From The Block

• Final bids for Eni SpA‘s 15% stake in Plenitude, a renewables company, are expected in the coming weeks. Apollo Global Management, Ares Management and Stonepeak are among the interested parties, according to Bloomberg—initial interest values Plenitude between €12 billion and €13 billion ($14 billion).

• Ayrmid Ltd. offered to acquire Bluebird Bio, Inc. BLUE for an upfront cash payment of $4.50 per share. The company topped a $3.00 per share bid from private equity firms Carlyle and SK Capital Partners.

• Rocket Companies Inc. RKT announced it will acquire Mr. Cooper Group Inc. COOP in an all-stock transaction for $9.4 billion in equity value. The move comes just after Rocket's $1.75 billion acquisition of online real estate broker Redfin Corp. RDFN. 

• The Hershey Company HSY agreed to acquire snack brand LesserEvil. This move reflects the confectionery giant’s ongoing effort to expand from sweets such as Reese’s and Jolly Ranchers into the better-for-you snack sector. The acquisition is reportedly valued at around $750 million.

• Rogers Communications Inc. RCI said on Friday it agreed to receive a 7 billion Canadian dollar (~$5 billion) equity investment from funds managed by Blackstone Inc BX, supported by several Canadian institutional investors.

• President Trump confirmed that the U.S. is nearing a deal to spare TikTok from a potential ban, with ongoing discussions involving multiple investors and a possible tariff agreement with China. During remarks aboard Air Force One, Trump didn’t specify whether the “very good group of people” interested in TikTok includes OnlyFans founder Tim Stokely. AppLovin and Amazon.com Inc. AMZN are also reportedly interested.

Bankruptcy Block

• Hooters, the restaurant chain known for its all-female waitstaff and neon orange branding, officially filed for bankruptcy protection. The Chapter 11 filing allows the chain to continue normal operations during the proceeding. Hooters said that all of its 100 restaurants will be sold to two existing franchisees, which own and operate more than 30% of Hooters’ locations in the U.S.

For the previous edition of Deal Dispatch, click here.