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The volume of US companies being taken over by their European rivals is now nearing its highest level in four years, according to a financial report.

So far this year businesses in Europe have spent $47.2bn (£27bn) buying up 262 of their American counterparts.

The last time European bosses spent more buying in the US was 2001, when they paid $50bn up to this point.

This week alone, UK bank HSBC and German sportswear group Adidas have both made significant US acquisitions.

Adidas has spent $3.8bn buying US rival Reebok, while HSBC has agreed to buy US credit card company Metris for $1.59bn.

"[European] chief executive confidence levels are up, the markets are stronger, financing costs are lower, and more importantly the market now views cross-border deals positively," said Andrea Orcel, Merrill Lynch's Co-Head of Global Markets and Investment Banking for Europe, the Middle East and Africa.

"As a result and given the levels of growth in the domestic markets, companies move abroad," she added.

http://news.bbc.co.uk/1/hi/business/4125728.stm

I guess it's one more effect of the cheap dollar. However, I think the idea was to have Europeans and others buy Harley Davidsons and such - not whole companies!

Ooh! Please let it be France that ends up owning us!

Europe has a very high current account surplus with the USA, on par with China I'd say though I don't have the exact numbers. That translates to a wealth transfer from 'rica to the old continent.

jaws wrote:Europe has a very high current account surplus with the USA, on par with China I'd say though I don't have the exact numbers. That translates to a wealth transfer from 'rica to the old continent.

Going by memory here, US 2004 trade deficit with EU 114 bln euros, with China 160 bln dollars. Don't quote me, google.