The historic neon Heinz factory sign is seen at night in Pittsburgh, Pennsylvania.
The historic neon Heinz factory sign is seen at night in Pittsburgh, Pennsylvania. - 
Listen To The Story
Marketplace

Investors are digesting a couple of big deals this morning. First, American Airlines and US Airways announced they are merging to form the world's largest airline. And second, Warren Buffett's company Berkshire Hathaway is going in on a deal to buy ketchup maker Heinz for $23 billion.

According to Susan Schmidt, head of U.S. equities at Mesirow Financial, markets should get ready to see a flurry of mergers and acquisitions.

"We had a slow down in 2012, but really this is a trend that we saw begin in 2010-2011," says Schmidt. "Companies have a lot of cash right now, they are in great capital positions by and large, they are looking for ways to strategically improve their businesses... A lot of times that means mergers."

To hear what a new crop of mergers might mean for the job market and small businesses, click on the audio player above.

 

“I think the best compliment I can give is not to say how much your programs have taught me (a ton), but how much Marketplace has motivated me to go out and teach myself.” – Michael in Arlington, VA

As a nonprofit news organization, what matters to us is the same thing that matters to you: being a source for trustworthy, independent news that makes people smarter about business and the economy. So if Marketplace has helped you understand the economy better, make more informed financial decisions or just encouraged you to think differently, we’re asking you to give a little something back.

Become a Marketplace Investor today – in whatever amount is right for you – and keep public service journalism strong. We’re grateful for your support.

Follow Jeremy Hobson at @jeremyhobson