Dealmakers Are Liking the M&A Vibes Right Now

The last three months of 2023 saw a spate of big transactions, including Exxon Mobil’s almost $60 billion purchase of Pioneer Natural Resources and Chevron’s $53 billion takeover of Hess. In December there was also Occidental Petroleum’s $10.8 billion pact for CrownRock, as well as Nippon Steel’s $14 billion agreement for United States Steel. The moves underscore pent-up demand in the market for big acquisitions in 2024, according to dealmakers. “Momentum is building,” says Gary Posternack, co-head of global M&A at Barclays Plc. The recent action also suggests acquirers aren’t afraid to tempt a challenge from the Department of Justice or Federal Trade Commission, the latter of which tried but failed last summer to block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. (The FTC revived its effort in September.)