Reuters Summit-Mergers could hit record high-JPM's Hersch

(For other news from the Reuters Investment Banking Summit, click here)

By Mark McSherry

NEW YORK, Nov 14 (Reuters) - Global mergers and acquisitions in 2006 could soon surpass the record year of 2000, helped by cross-border deals and the ongoing leveraged buyout boom, Dennis Hersch, global chairman of M&A at JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz), said on Tuesday.

Speaking at the Reuters Investment Banking Summit in New York, Hersch said the ability of the debt markets to absorb the huge amounts associated with this year's biggest buyouts was another crucial factor fueling the boom.

The value of announced global mergers and acquisitions stands at $3.32 trillion for 2006 year to date, compared to $3.33 trillion for full year 2000, according to research firm Dealogic.

"I think it's very possible that we'll exceed 2000," said Hersch.

Going forward, Hersch said he expects the financial institutions, natural resources, health care and transportation sectors to be among the areas busy with consolidation.

Hersch said major Japanese companies are looking for deals in the United States "to a greater degree than I have seen in recent years."

Big Japanese financial firms are known to be keen on buying U.S. firms, but Hersch added: "It's not just financial institutions. (It's) industrial companies. I think the emphasis is on industrial."  Continued...