Conditions ripe for M&A in FB&A
Economic conditions in the food, beverage and agribusiness sectors have positioned the industry for a sharp uptick in corporate activity in 2021.
In the wake of the COVID-19 pandemic, FB&A companies around the globe are reassessing their business models, with divestment and further investment both on the table.
A low interest-rate environment will encourage investment in FB&A from outside the sector, particularly as returns continue to look favourable against other traditional asset classes. On top of this, the market is flush with capital, and the pandemic has reminded everyone of the critical importance of food security and captive supply.
When you put all these things together, it’s easy to see a spike in merger and acquisition activity being one of the key themes dominating the FB&A sector in 2021.
None of us really know what the new normal for is going to look like. At ANZ, we think the businesses who are innovative, adaptable and forward-looking are the ones who are going to succeed.