Companies from emerging markets, armed with piles of cash from rising commodity prices and abundant financing, are snapping up targets in Europe and the U.S., a trend that could shift the global economic balance of power in some industries.
Bankers and executives say the latest wave is being driven by a host of new factors. One is an excess of cash, generated in part from the soaring price of oil and other commodities in recent months. Many buyers are backed by national governments that are looking to invest their newfound riches in other industries that will help diversify their economic base or provide new distribution outlets for their exports.
Economic conditions have changed, too. At the same time that once closed countries like China and India have opened up their economies, hedge funds are controlling ever-wider stakes of public companies in Europe and the U.S., and generally are neutral about who buys their holdings.