Merger and acquisitions (M&A) activity remained slow during the second quarter of the year.
The reason? The Federal Reserve has kept interest rates high, making it tougher to finance deals. That’s according to a report Sunday (Aug. 25) by Seeking Alpha, citing data from S&P Global Market Intelligence.
The number of M&A deals has been below 10,000 for three of the last four quarters. During the second quarter, that number came to 9,719, the report said, an increase from the first quarter but down from 10,784 in the second quarter of last year.
Transaction values were down as well, from $621.1 billion in the first quarter of the year to $600 billion, but up from $593.1 billion last year at this time. The total value of global M&A deals for the first half of the year increased 12% to $1.22 trillion from a year ago.
“The quarterly total value is still far below 2021 levels, when the total surpassed the $1 trillion mark each quarter, but the year-over-year rise in 2024 shows that dealmakers are more willing to execute large transactions,” the S&P report said.
The Seeking Alpha piece noted that the amount of deal-making activity is critical for investment banks, which earn fees for helping companies with sales and acquisitions and for underwriting equity and debt to fund these deals.
It’s not just big investment banks taking notice of this landscape. Last week saw a report that regional banks in the U.S. were seeking M&A to bolster their balance sheets and enhance their competitiveness in the face of challenges posed by elevated interest rates, rising competition for deposits, and losses from commercial real estate.
Regional lenders with assets from $10 billion to $100 billion have conducted 38 deals this year, surpassing the 29 deals from the same period last year, Reuters reported, citing data from Dealogic.
In other interest rate news, PYMNTS wrote last week that the higher cost of debt, “perhaps needlessly too high, dented the nation’s pocketbook overall.”
Each quarter-point of interest rates, that report noted, ends up making the cost of borrowing more expensive, to the tune of billions of dollars.
“Low” earners, that report added, have exhausted much of their spending power, with 79% of the available limits used up. In addition, they have roughly $5,600 in savings, versus as much as $16,000 for individuals and households who make more than $100,000 a year.
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
