Goldman Sachs ($GS) President John Waldron said the firm is increasingly optimistic about mergers and acquisitions, citing rising industry consolidation, an uptick in private equity-backed transactions, and the Federal Reserve’s rate cuts lowering the cost of capital.
Key facts:
- Waldron pointed to the $85 billion Union Pacific–Norfolk Southern deal as an example of transformative consolidation.
- Global M&A deals totaled $2.6 trillion in the first seven months of the year, the strongest since 2021.
- Goldman Sachs sees private equity deal activity accelerating, reflected in its growing backlog.
- Lower interest rates are expected to further support dealmaking conditions.
- Waldron cautioned about U.S. fiscal sustainability, warning that long-term spending control is needed.
- He also flagged risks from barriers to global hiring, including the Trump administration’s proposed $100,000 H-1B visa fee.
Relevant Companies
- Goldman Sachs ($GS): Directly affected by rising M&A deal activity and private equity trends.
- Union Pacific ($UNP): Engaged in an $85 billion merger with Norfolk Southern.
- Norfolk Southern ($NSC): Target of Union Pacific’s acquisition, reshaping U.S. rail freight.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
