Eric Johnson Discusses Potential Impacts of COVID-19 on M&A Deals with Law360

Winston & Strawn Houston Capital Markets Partner Eric Johnson was quoted in Law360’s article “Coronavirus Fears Cast Cloud Over Dealmaking.” According to Law360, the Coronavirus fallout has largely halted mergers and acquisitions activity and slowed public offerings in China and its adjoining regions, which could eventually spread to cross-border transactions beyond Southeast Asia if the virus continues to proliferate. 

Research from Dealogic indicates that China-targeted mergers and acquisitions activity is down more than 20% year to date while proceeds have plummeted by more than half. Initial public offerings in China are actually up year to date, though much of the activity occurred in early January before the severity of the outbreak was widely known.

Eric notes that oil prices are down 17% year to date, while natural gas prices have also tumbled. The U.S. is a big exporter of liquefied natural gas to China, but declining prices are hurting prospects for oilfield service companies.

“You are seeing this trickle-down of uncertainty, which is obviously going to negatively impact M&A,” he said.

View the full Law360 article here.

View all of our COVID-19 perspectives here. Contact a member of our COVID-19 Legal Task Force here.