Fear factor fades as global M&A hits seven-year high

London

CHIEF executives got their deal-making confidence back in 2014, emboldened by a clearer outlook for their businesses to take the global value for mergers and acquisitions (M&A) to their highest annual level since 2007.

The total was boosted by a rush of large deals in the telecoms, healthcare and consumer sectors, with transactions, some of which had been contemplated for years, promising to cause a chain reaction as rivals move to defend their territory.

In the latest example, British telecoms group BT's move to buy mobile operator EE is expected to put pressure on rivals to seek their own tie-ups as fixed-line and mobile networks and pay-TV services converge.

"The need to stay competitive and strengthen the core business is the main catalyst," said Wilhelm Schulz, head of M&A in Europe, Middle East…