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Significance
The deal is the largest of 2016, a year in which acquisition premiums are the highest in a decade. However, this year has also seen the most cancelled transactions since the 2008 financial crisis. Volatility within the macro environment highlights the risks to these transactions, where a misvaluation of a few percentage points can cost billions of dollars.
Impacts
International expansion multiplies the markets whose macroeconomic performance must be modelled.
For example, not anticipating the commodities bust would have overvalued companies operating in markets as diverse as Australia and Zambia.
Upside risks increase for investors who accurately forecast that the market consensus has not priced in necessary information.
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2016
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