Corporate Finance Soundbite: Mergerspresso

Lucy Robson:

Is FOMO the best M&A catalyst? … And does fear of missing out push companies towards M&A? Welcome to Mergerspresso! All you need to know on one topic, without any froth. I’m Lucy Robson.

Angus Rollo:

And I’m Angus Rollo. 2026 has started with something of a bang Lucy! We’ve already seen possible mega deals in insurance and in natural resources. And although the Rio Tinto/Glencore tie up won’t move ahead, at least not for the time-being. We’ve seen before that it just takes a rumour and a leak announcement to shake out some M&A in a sector.  

Lucy Robson:

We really have! And I guess it's particularly noticeable in smaller segments. It typically starts with talk of a merger between two sector peers – and that immediate sharpens the focus of the rest of the segment. Many double down on the search for their own merger partner, or go shopping, in a bid to maintain their competitive edge. 

Angus Rollo:

Absolutely. And in a market where consolidation and a drive for scale are major themes, or if a competitor acquires a key capability, sitting still can genuinely hold you back. So there is so methid in FOMO, plus there's the deal synergies. Sector M&A consolidation inherently drives savings, which others then feel pressure to replicate that.  

Lucy Robson:

And… I guess the danger is that FOMO starts driving a company's strategy. Yes, it's always important to move quickly, but there's a fine line between strategic necessity and missing out. If FOMO takes over, that's when it starts to feel like an impulse purchase. 

Angus Rollo:

Yes, I definitely agree. It's critcal that the fundamentals still need to stack up. And timing is also really key in these turbulent times we are living in right now. A little FOMO can sharpen the thinking, but too much means you can end up paying a premium for panic. It's always going to be a major catalyst, but it absolutely should'nt be allowed to take over, you have got to keep your discipline. 

Lucy Robson:

Well, if you're feeling the Mergerspresso FOMO, we'll be back again in a couple of weeks. Get in touch if you'd like to chat and catch us on Spotify, Apple and Amazon podcasts in the meantime.