After Heinz and Dell, a Merger Boom Fails to Appear

Two big deals announced in February—Berkshire Hathaway’s $23 billion takeover of Heinz and the proposed $24.4 billion buyout of Dell—prompted speculation that a new wave of megamergers and buyouts was finally under way after a five-year drought. What’s happened since? Very little. The value of announced global mergers in March was about $100 billion through the 27th, on track for the lowest monthly total since July 2009.

Some on Wall Street say the Heinz and Dell deals were special situations that didn’t signal the start of a trend. Warren Buffett strikes when he sees an opportunity, and he can go for long stretches without making a major purchase. With Dell, the bidding was initiated by the company’s founder, who still controls 15.6 percent of the shares. Dell has also gotten bids from Blackstone Group and Carl Icahn. The two deals “may be unique to this quarter,” says Michael Carr, head of mergers and acquisitions for the Americas at Goldman Sachs.