An increase in M&A?

摘要

A build-up of cash and debt capacity in some quarters, coupled with attractive valuations below previous mid-cycle levels, could lead to an increase in M&A activity across the sector. Indeed, we see the engineering consultants as a consolidating sector and WSP in particular as a potential takeover candidate given its current valuation. Rumours of private equity bids for Rentokil, Regus and to a lesser extent 64S could resurface if share prices become significantly depressed.