Prediction #2 - Global Consolidation

This is actually not so much a prediction, but more the observation of a trend. 2007 will be the year of mergers and acquisitions as more organisations start buying up assets in different parts of the world. This is not just limited to global companies, but would involve many private equity firms.

We've started seeing traces of these things happening in 2005, and the trend picked up some speed in 2006. Hence, my prediction that in 2007, things are going to go full swing. We will see lots of major companies getting gobbled up. As a teaser, this month of december alone, has already seen buyout news of: air carriers, a satellite broadcaster, offshore operator, casino operator, steel and cigarettes. Basically, all kinds of businesses, from products to services. Everything.

And the interesting thing is, that most of these are unsolicited buyouts. None of the companies seem to be running into any problems and are doing fine by all accounts. I guess it's just that the world is going through a phase of global consolidation. People with too much money and nothing else better to do with it. Globalisation to the max!

What's scary is that, we'll end up with a world where the same few people at the top, own every thing in the world. Scary indeed. In fact, some of the buyouts, have taken previously public companies, private. I guess, the people who are really excited about these are the bankers, untill of course, they all get bought up as well. But then, maybe they'd be excited about that as well.

PS. I'm not an economist nor anything related. I obviously don't know what I'm talking about. Large helpings of salt please!