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Jim Cramer Predicts Surge in Mergers and Acquisitions Under Trump, Antitrust Regulations May Be Eased

Nov 07, 2024, 1:04 a.m. ET

Asianfin -- Jim Cramer, host of CNBC, suggested on Wednesday that under Donald Trump's leadership, mergers and acquisitions (M&A) activity will make a strong comeback, potentially at a much larger scale. According to Cramer, businesses that align with the new president's administration will no longer need to worry about stringent antitrust scrutiny.

Cramer noted that the past few years have seen one of the longest dry spells in M&A history. However, he believes that acquisitions remain a key driver for investors entering the market. Regional banks, in particular, stand to benefit from increased M&A activity, with financial stocks seeing gains during Wednesday's trading session. Regional banks could achieve growth by acquiring smaller institutions in their areas or through mergers to become "super-regional banks" capable of competing with large national banks.

In addition to the M&A revival, Cramer also speculated that Trump could relax antitrust regulations, which may prevent the breakup of major tech companies like Alphabet. However, he pointed out that this will depend on Trump's personal stance toward these companies. Cramer referenced the Trump administration's 2017 attempt to block the merger between AT&T and Time Warner, partly due to Trump's dislike of CNN, which was owned by Time Warner at the time.

Given the warm congratulations from major tech CEOs following Trump's victory, Cramer's predictions about potential regulatory changes are not surprising to many.

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