Trump 1.0 was as tough on M&A as Biden. Trump 2.0 may not be different.

Published On Nov 12, 2024, 4:00 AM

The article discusses expectations around mergers and acquisitions (M&A) under a potential second Trump administration. Although the business community anticipates a more relaxed approach to M&A regulation, historical data suggests that Trump was just as tough as Biden on enforcing antitrust laws. Under Trump's first term, there were high levels of merger enforcement actions, and experts expect continued scrutiny, albeit with a focus on negotiations rather than litigation. Predictable changes in leadership within the Federal Trade Commission (FTC) could impact this landscape, but major tech companies like Google and Apple may still face significant regulatory pressure. Overall, investors may need to temper their expectations regarding a 'deregulated' M&A environment under Trump 2.0.

Stock Forecasts

Given Trump’s track record concerning M&A regulation and the expected continuation of scrutiny under his administration, investors in major tech stocks like Google (GOOG) and Apple (AAPL) may face challenges. Antitrust lawsuits and investigations could hinder their growth potential in the short term, suggesting a negative outlook for the sector.

The anticipated removal of strict regulatory approaches towards M&A may temporarily increase investor confidence in companies involved in mergers and acquisitions. However, companies like AT&T (T), which have previously faced litigation, may still experience volatility due to ongoing regulatory scrutiny. This could lead to a negative sentiment impacting their stock performance as well.

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