Mergers and acquisitions ramp up with American Airlines and Heinz deals

The historic neon Heinz factory sign is seen at night in Pittsburgh, Pennsylvania.

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.

 

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.

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