M&A market ‘firing on all cylinders’, headed for record year, Citigroup says

The mergers and acquisitions (M&A) market is expected to have its best year ever, with artificial intelligence dominating activity despite recent volatility in technology stocks and broader jitters across assets, according to senior investment bankers at Citigroup.

“We’re seeing a general correction that doesn’t fully distinguish winners from losers these last few days,” he said on Friday during a visit to Hong Kong. “You still have valuations that are healthy, and you have a market that is still constructive.”

“Deals are still getting done and will continue to get done,” said Colin Banfield, Citigroup’s head of Asia-Pacific M&A, citing several AI-related infrastructure mandates in the bank’s pipeline. “While valuations might have adjusted in the short term, the long-term relevance of AI is unquestionable.”

Last week, private equity giant KKR and telecommunications firm Singtel agreed to buy the remaining 82 per cent stake they did not already own in Singapore’s ST Telemedia Global Data Centres, valuing the digital infrastructure operator at S$13.8 billion (US$10.9 billion). Citigroup was the lead financial adviser to KKR and Singtel in the transaction, which was Singapore’s largest M&A deal in four years.

The AI theme would dominate the M&A market and continue to drive the M&A agenda over the next few years, said Baygual, who joined the US bank in September after a more than 25-year career with JPMorgan Chase.