What the Burlington Northern and Black & Decker Deals Have in Common

The Deal Professor, having expressed his dismay at the lack of M&A a day too early, weighs in on the similarities between Buffett’s purchase of BNI and the Stanley Works buyout of Black & Decker

From Steven M. Davidoff (NYT):

While both deals may or may not be the sign of a new trend, and two deals certainly do not make a trend, both are notable for their similarities. Both are strategic investments in America. Burlington Northern is a railroad; its success or failure depends on the state of the American economy. Stanley Works and Black & Decker are American icons in the tool-making business that derive substantial portions of their revenue from American sales and are merging to further fight off global competition.

The deals represent the creative consolidation going on in the distressed M.&A. market.

An interesting look at what dealmaking looks like these days.

Read the rest:

2 Big Deals (NYT)