M&A Deals Monthly Monitor: January

(January) - The year 2015 saw hectic merger and acquisition activity as the companies took to expanding the bottom lines via the takeover route. The sluggishness in the global economy has meant the profits have stagnated and the one way to bolster margins is the through M&A’s.

Following up on the US pharma giant Pfizer’s (NYSE: PFE) planned  $160 billion merger with Botox maker Allergan (NYSE: ACT), or the mega deal for 2015, was Ireland headquartered Shire (LSE: SHP). The company had been trying to woo the rare disease drug maker Baxalta (NYSE: BXLT) for half a year and January saw the US-based firm finally say yes.

Slow growth, depressed markets and persistently low oil prices have created the right environment for more deals. US pharma major Johnson & Johnson (NYSE: JNJ) might just be preparing to jump into the fray following a set of disappointing results. The company is sitting on a pile of cash and is well positioned to make most of the consolidation in the sector.