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Wall Street rushes to close megadeals worth hundreds of billions of dollars before Trump’s power wanes
The largest American corporations and investment banks are speeding up preparations for multibillion-dollar mergers and acquisitions after the Republican rout in the midterm elections on 3 November. Democrats took control of both chambers of Congress, but antitrust regulators appointed during Donald Trump’s administration remain in power. Wall Street hopes to use the remaining time to agree on deals that, if political pressure increases, could face investigations and blocks, Bloomberg reports.
More than half of all U.S. megadeals valued at $50 billion were announced during Trump’s two presidential terms over the past 20 years. In November Marvell Technology announced the acquisition of Lumentum Holdings for $115 billion — the largest tech takeover by equity value, excluding the SpaceX–xAI combination. The U.S. Department of Justice also approved Warner Bros. Discovery’s acquisition by Paramount Skydance for $110 billion without antitrust conditions. The deal closed in October.
The next megadeal could be the merger of Elon Musk’s SpaceX and Tesla. The billionaire, who spent nearly $500 million supporting Republicans in the midterms, intends, according to Bloomberg, to announce a merger in the first half of 2027. After the Democrats’ victory, shares of both companies fell on concerns about investigations into Musk’s political and business ties and tighter rules for the artificial intelligence industry.
Other deals face political review: DoorDash’s planned purchase of Instacart for $17 billion, NextEra Energy’s acquisition of Dominion Energy for $67 billion, and the already completed Paramount–Warner Bros. merger. Senators Ed Markey and Richard Blumenthal warn of risks to competition and consumer prices, and Cory Booker is demanding parliamentary oversight of the media deal.
Starting in January 2027, Democrats will be able to launch hearings, investigations, and congressional subpoenas for corporate leaders, even if the deals received regulator approvals. Additional blows to the market came from concerns about AI spending and restrictions on data-center construction. After the elections the Philadelphia Semiconductor Index suffered its largest one-day drop since March 2020, and Marvell’s and Lumentum’s shares plunged.
Bankers at JPMorgan and Wells Fargo warn of a now-or-never mentality. JPMorgan co-head of investment banking Kevin Foley says it would be risky to wait for previous conditions to return, while Wells Fargo spokesperson Fernando Rivas predicts deal acceleration in the coming months. Wharton expert Paul Neri recommends beginning preparation for complex takeovers now and announcing them no later than mid‑2027.
Not even Trump’s trade war stopped the market: in 2025 the volume of announced mergers and acquisitions reached $4,5 trillion — the second-highest result in history. Now the largest corporations are hurrying to take advantage of current regulatory conditions before the new Congress tightens scrutiny of deals that brought investment banks record fees.
Incredible, but true....
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