War nerves compound cross-border M&A slump

Dealogic, the UK capital markets research firm, said volumes in cross- border M&A in Q1 were down 22% in terms of deal value on last year’s figures to $97 billion.

The drop in M&A deals is primarily due to increased risk aversion and caution among investors in the build-up to war with Iraq, analysts told FX Week. "M&A are crucial investments for people involved and they need certainty," said Aziz McMahon, FX strategist at ABN Amro in London. He added that M&A deals have fixed costs, involve