NEW YORK ( TheStreet) - Deal volumes for the third quarter sank to their lowest levels in three years as a lack of corporate confidence on the economic outlook continues to erode M&A appetite.
There were just 2,235 deal announced in the third quarter, the worst since the same period in 2009, according to Dealogic, as uncertainty caused by the government shutdown, an end to Federal Reserve stimulus and a raft of new capital and regulatory requirements bite.
For the year to September, deal volumes were down 18% on last year, to 7346, while overall deal value jumped 45%, to $861 billion, due to the return of mega-deals such as Verizon Communications Inc.'s $130 billion acquisition from Vodafone Group plc of the 45% stake of Verizon Wireless that it doesn't already own.
RBC Capital Markets Corp.'s head of U.S. M&A Vito Sperduto said the government shutdown and debt ceiling debate were two major issues impacting corporate confidence."Over the next two to three weeks, my biggest concern is the stability of the U.S. economy," he said. "Once we get past that threat, there's a solid
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