REUTERS NEXT-Goldman CEO says dealmaking could surpass 10-year averages in 2025

Reuters
2024-12-11
REUTERS NEXT-Goldman CEO says dealmaking could surpass 10-year averages in 2025

By Lananh Nguyen, Nupur Anand and Saeed Azhar

NEW YORK, Dec 10 (Reuters) - Goldman Sachs GS.N CEO David Solomon said on Tuesday that dealmaking in both equities, and mergers and acquisitions, could potentially exceed 10-year averages next year.

"I think in 2025 we will certainly be at 10-year averages. We might even be ahead of 10-year average," Solomon said in an interview at the Reuters NEXT conference in New York.

In the weeks since Donald Trump's U.S. presidential election victory, bankers have become more bullish on deals. Some predicted friendly regulators to be installed atop key government agencies, sweeping away regulations regarded by some as onerous, but many said it was too early to tell what economic policies will be implemented by the incoming administration.

"I am quite optimistic that this administration is going to run a very, very pro-growth agenda," Solomon said.

"The first 100 days, obviously, will give us some indication about the balance of whether it's trade policies, immigration policies, energy policies, tax policies - how the combination of those things will come together."

Goldman Sachs has benefited from a rebound in investment banking over the last year, cementing its top spot in global rankings of firms that advise on mergers and acquisitions.

In one of the biggest deals of the year, Goldman advised Cheez-It maker Kellanova K.N, which agreed to be purchased by candy giant Mars in August for nearly $36 billion.

Buyouts from private equity firms have been slow, but bankers expect activity to pick up next year.

Meanwhile, Goldman continues to shrink the consumer business that was once championed by Solomon. Its retail operations lost billions of dollars and prompted the bank to sell assets and take writedowns.

Goldman has since shifted its focus back to traditional mainstays of investment banking and trading.

To view the live broadcast of the World Stage go to the Reuters NEXT news page: https://www.reuters.com/world/reuters-next/

(Reporting by Lananh Nguyen and Nupur Anand in New York, Manya Saini in Bengaluru and Saeed Azhar in TorontoEditing by Matthew Lewis)

((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

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