JPMorgan's deputy Emea chief predicts continued M&A boom

Booming mergers and acquisitions markets will continue well into 2015 as low interest rates, shareholders' earning demands and high share prices trigger record levels of dealmaking, according to JPMorgan's newly-appointed second-in-command in Europe, the Middle East and Africa.

On Monday, Viswas Raghavan was named as the deputy head of JPMorgan's investment bank, private bank and asset management arms across Emea, replacing Emilio Saracho who becomes one of JPMorgan's three global vice-presidents.

"The focus really is in M&A," Mr Raghavan told the Financial Times. "The level of strategic thinking and activity is higher than we have seen for quite a few years. How much of that translates into activity remains to be seen, but based on recent activity and the pipeline, it looks very promising."

Mr Raghavan said high share prices were pressuring corporate chief executives to find ways to improve their earnings, a thought-process that often leads to acquisitions. Indices from London's FTSE 100 to France's CAC have touched record highs in recent weeks.

Acquisitions are also cheap, thanks to low interest rates which make borrowing cheaper and high share prices, which make share-based deals less costly. "It's a pretty heady cocktail that should drive activity," said Mr Raghavan, speaking days after the announcement of one of the biggest M&A deals in recent memory, Shell's £47bn acquisition of BG Group.

JPMorgan was the second-biggest operator in Emea investment banking in the first quarter of 2015, according to data from Dealogic. In 2014, it was the biggest, with a 7.5 per cent market share.

"The key is not to be complacent, and really focus on how you can get better . . . in every business there is potential for further market share gains," said Mr Raghavan, describing all three of his business lines as "best in class'".

More broadly, Mr Raghavan said a lot of investment in 2015 would be focused on northern Europe, particularly the UK, German-speaking Europe and France. He declined to comment on the impact that the upcoming UK election could have on any possible expansion in London.

Mr Raghavan retains his original job as head of Emea banking, and will remain in London, as will Mr Saracho. Both will report jointly to Daniel Pinto, chief executive of JPMorgan's Emea Corporate & Investment Bank and Mary Erdoes, head of JPMorgan Asset Management.

"Emilio and Vis are among the leaders that have helped us reshape our business, adapt to new rules, simplify our structure, and strengthen controls," Mr Pinto and Ms Erdoes said in an internal memo.

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