Prof. Vaaler in Minneapolis St. Paul Business Journal on Twin Cities M&A Trends

Professor Paul M. Vaaler was interviewed by Patrick Rehkamp of the Minneapolis St. Paul Business Journal on recent merger and acquisition activity by Twin Cities-area businesses. Vaaler commented about a $50 billion merger of Medtronic and Covidien in 2014-2015, which stands out from other M&A transactions in Minnesota during this period because of its sheer size and its apparent tax avoidance motivation. Many other M&A transactions by Twin Cities-based firms had apparently stronger strategic motivations—for example, the $13 billion acquisition of pharmacy services care firm Catamaran by United Health's OptumRx business in 2015. M&A deals motivated by tax and strategic factors have been fueled by a combination of low borrowing costs, steady economic growth, and more permissive regulatory (antitrust) policies nationally. These trends should continue in 2016. Minnesota is the corporate headquarters to 17 Fortune 500 firms and the home of many other large divsions of firms headquartered elsewhere. This means a continuing national trend of increasing M&A activity will also likely be a Minnesota trend in 2016.