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M&A among top 50 consumer goods giants fall to US$50b in 2016: report

Monday, July 10, 2017 - 10:04

MERGERS and acquisitions (M&As) among the top 50 consumer goods giants have fallen sharply from US$226 billion in 2015 to US$50 billion in 2016, based on a report by OC&C Strategy Consultants.

Its 15th annual Global 50 report, in collaboration with grocery and retail industry publication The Grocer, examines the financial performance of the world's 50 largest consumer goods companies such as Nestle, P&G, Diageo and PepsiCo.

"With organic revenue growth at historic lows and companies under pressure from activist shareholders to boost margins, M&A had become a critical source of growth among the Global 50 in recent years," the report said.

But it noted that political uncertainty caused by Britain's EU referendum, populist parties gaining ground across Europe and the US presidential election is likely to have depressed deal-making in the sector.

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