Royce co-CIO George predicts M&A 'supercycle'

Royce & Associates co-CIO Whitney George believes markets are entering a ‘supercycle' in M&A activity, as the subdued economic environment forces companies to attempt to acquire growth.

George, who oversees $30bn of assets at the New York-based group, says the strong current wave of M&A is likely to continue and is a "global phenomenon". "We are seeing a supercycle in M&A. There is not much growth out there and there are a lot of strong balance sheets. This is all possible by extremely low financing rates on offer," George, the manager of the UK-domiciled Legg Mason US Smaller Companies fund, says. "Look at the recent bidding wars in technology. Companies are actively seeking growth. This is happening across the world. Private equity firms too, which have not really ...