New wave driven by structural consolidation as cos. see logic of merging with or acquiring cos. in same industry to bolster competitive positions, analysts led by Garry Evans write in global equities report.
- In many industries cos. sitting on large cash piles so there should be no problem financing deals * Telecoms: European regulatory change means consolidation will continue as theme in fragmented, underinvested sector; sees Vodafone, Liberty Global leading this * Latin America: M&A trend of 2013 likely to continue; Brazil mobile market would be healthier if it shrank to three from four players * Mexico: Amid domestic slowdown cos. can buck trend and generate earnings growth through M&A; sectors that have been active on M&A/consolidation incl. food & beverage, industrials, financials * Luxury goods: Most cos. will be faced with cash piles sooner or later, though available targets sizeable enough to “move the needle” for larger groups are scarce, synergies limited