Merger arbitrage, megacap deals, and the complexity premium – Davidson Kempner’s Suzy Gibbons and Michael Chiaramonte

In the last couple of years there has been an increase in megacap deals with global exposure. However, despite the growing number of large deals, they have longer timelines and geopolitical factors that make these transactions more complex.One example of the increased complexity is the jump in foreign investment reviews on megadeals. During 2005-2020, only 11% of megadeals were subject to foreign investment reviews, but from 2021 to 1H26, 40% of megadeals were subject to foreign investment reviews. Davidson Kempner’s Suzy Gibbons, partner and head of research, and Michael Chiaramonte, partner and deputy head of merger arbitrage, join Mergermarket’s global regulatory editor, Reuben Miller, to discuss their new white paper, Merger Arbitrage: Opportunity in Regulatory Complexity.The conversation delves into questions like how does complexity create opportunities for investors, how has the change in US administration altered deal activity, how do differing national priorities and security measures play into dealmaking, and why there is “complexity premium"?