Company merger and acquisition activity is increasing on the back of the recovering economy and low interest rates, according to Chief Investment Officer Haig Bathgate.
The latest examples are the $11 billion purchase by Burger King of Canadian coffee and doughnut chain Tim Hortons and Amazon's $1 billion acquisition of gaming web site Twitch. While interest rates at near zero are keeping down the cost of financing these deals, for Burger King there's the added incentive of moving headquarters to Canada, which has a lower corporation tax rate.
Haig, speaking on BBC radio's Good Morning Scotland, also commented on a CBI survey that showed a slowdown in UK service industry growth.
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