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<\/iframe><\/div>\n<div id=\"article-body\">\n<p>A year ago when the presidential race between Donald Trump and Kamala Harris was heating up, a veteran mergers and acquisitions adviser told me that if the Republican candidate won, many on Wall Street would eventually long \u201cfor the return of Lina Khan\u201d.<\/p>\n<p>The top rainmaker was flagging his concerns that Trump\u2019s antitrust policies would make it even harder to get deals approved than under Joe Biden\u2019s progressive head of the Federal Trade Commission, the US competition watchdog.<\/p>\n<p>Twelve months on, many mergers and acquisitions bankers argue that this has turned out to be the case. They say deal approvals have become more politically charged than under Khan, who was accused by bankers and lawyers in her time in office of using M&A approval procedures to influence public policy on matters beyond preserving competition.<\/p>\n<p>Since Trump\u2019s return to power, dealmaking has collapsed in the US, partly because of policy upheaval in areas such as tariffs but also because of the uncertainty and politicisation of getting transactions approved.\u00a0Roughly 10,900 deals were announced in the three months to June 30, according to LSEG data. That was the lowest quarterly total since early 2015, excluding the pandemic-affected second quarter of 2022.\u00a0<\/p>\n<p>Rather than being based on pure market analysis, dealmakers say merger reviews have increasingly started to reflect partisan agendas on issues ranging from \u201cAmerica First\u201d nationalism to the eradication of diversity, equity and inclusion policies. \u201cI have been working on multiple deals where I have people inside the White House telling me what I can and can\u2019t do,\u201d said a top dealmaker involved in transactions unrelated to the government. \u201cIt\u2019s a level of intrusion I have never experienced before.\u201d<\/p>\n<p>Few dealmakers will criticise the administration on the record for fear of retribution. But Nippon Steel\u2019s acquisition of US Steel is an example cited by transaction experts. During his 2024 campaign, Trump denounced the Japanese company\u2019s acquisition of US Steel as a threat to American manufacturing. Yet, upon resuming office, he approved the deal after forcing a \u201cgolden share\u201d structure on the buyer \u2014 essentially giving the government veto rights over strategic decisions.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae12f753e-4a87-4bb1-bb90-89d424e99a64?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae12f753e-4a87-4bb1-bb90-89d424e99a64?source=next-article&fit=scale-down&quality=highest&width=700&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae12f753e-4a87-4bb1-bb90-89d424e99a64?source=next-article&fit=scale-down&quality=highest&width=700&dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae12f753e-4a87-4bb1-bb90-89d424e99a64?source=next-article&fit=scale-down&quality=highest&width=700&dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae12f753e-4a87-4bb1-bb90-89d424e99a64?source=next-article&fit=scale-down&quality=highest&width=700&dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Af352d54d-9ef3-44e8-98a4-ec83da7fe232?source=next-article&fit=scale-down&quality=highest&width=490&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Af352d54d-9ef3-44e8-98a4-ec83da7fe232?source=next-article&fit=scale-down&quality=highest&width=490&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Af352d54d-9ef3-44e8-98a4-ec83da7fe232?source=next-article&fit=scale-down&quality=highest&width=490&dpr=3 3x\" width=\"1500\" height=\"2000\"\/><img decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Fb88b1d20-58f2-11f0-8564-1d11d9e59f1c-standard.png?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1\" alt=\"Line chart of Number of deals showing Global dealmaking volumes have dropped sharply\" data-image-type=\"graphic\" width=\"3500\" height=\"2500\" loading=\"lazy\"\/><\/picture><\/figure>\n<p>Advisers warn this sets a precedent: future foreign takeovers may hinge on political bargaining just as much as a ruling on competitive effects. And more generally in M&A, non-traditional factors are coming into play in the approvals process. <\/p>\n<p>\u201cTransacting parties need to be prepared for regulatory scrutiny, even if the risk is considered low. In the current global environment, politics or other exogenous factors can easily come into play, often in unexpected ways,\u201d corporate law firm Wachtell said in a memo about deals and politics.<\/p>\n<p>A senior PR adviser who has navigated sensitive transactions adds: \u201cCEOs are struggling to make sense of what the government wants\u2009.\u2009.\u2009.\u2009Most are waiting on the sidelines for greater clarity. Those who need to do a deal are seeking help to sell it in a way that will be well received by the administration.\u201d<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"727cc4a8-cbb5-470e-83ed-e005289d1f13\">\n<div class=\"o-teaser__image-container js-teaser-image-container\">\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2319\/1305\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F6c00162d-8ebb-41ab-9f53-8852263a6628.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&fit=scale-down&dpr=2&width=240\" alt=\"\"\/><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>Dealmakers have told me this sometimes means taking a cautious stance on issues unrelated to a transaction, such as diversity, equity and inclusion matters. <\/p>\n<p>\u201cMany companies still want to remain committed to DEI, but they are asking for our advice to scrub all references to DEI so they won\u2019t be targeted by the FTC or other regulators,\u201d says one consultant to chief executives on deals. <\/p>\n<p>One rainmaker on Wall Street adds: \u201cThe system is becoming totally political and in some cases personal.\u201d <\/p>\n<p>Current policymakers argue politicisation of M&A approvals did not begin with Trump\u2019s second term. They say Khan and former Department of Justice antitrust division head Jonathan Kanter pursued a progressive agenda under Biden in challenging tech megamergers and private equity transactions. But the once-narrow remit of competition policy has widened further. The FTC, for example, convened a workshop on July 9 on whether consumers have been exposed to false or unsupported claims about \u201cgender-affirming care\u201d for minors and the potential harms consumers may be experiencing.<\/p>\n<p>By treating such matters as antitrust concerns, regulators signal that deals are subject to considerations far beyond price and market share. Corporate counsels caution that this risks eroding the impartiality that underpins US merger policy. <\/p>\n<p>\u201cWe\u2019re seeing a chilling effect,\u201d says one dealmaker. \u201cClients hesitate to launch cross-border transactions because they fear hidden political hurdles \u2014 golden shares, ideological carve\u2011outs or cultural mandates.\u201d <\/p>\n<p><em>jfk@ft.com<\/em><\/p>\n<\/div>\n<p>#bankers #find #dealmaking #tough #Trump<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington, business and the world A year ago when the presidential race between Donald Trump and Kamala Harris was heating up, a veteran mergers and acquisitions adviser told me that if the Republican candidate won, many on Wall […]<\/p>\n","protected":false},"author":1,"featured_media":248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[393,395,394,396,82],"class_list":{"0":"post-247","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bankers","9":"tag-dealmaking","10":"tag-find","11":"tag-tough","12":"tag-trump"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=247"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/248"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}