The attractiveness of the US consumer market remains strong! Deutsche Bank predicts: the direction of cross-border mergers and acquisitions is changing, US consumer goods companies will become "hot cakes".

Siddharth Malik, Co-Head of Consumer and Retail Investment Banking at Deutsche Bank Aktiengesellschaft, stated that despite concerns about the economic outlook, global corporations may still consider acquiring American consumer goods companies in order to expand further into the strongest consumer market in the world. Malik said, "Cross-border M&A transactions towards the US will accelerate. For all consumer goods companies, the US remains the absolute priority market." Large transactions targeting American consumer goods companies suggest a possible shift in the M&A trend. In recent years, the trend has been more in the opposite direction. Earlier this year, American spice and seasoning manufacturer McCormick & Company, Incorporated agreed to acquire most of Unilever PLC's food business. And not long ago, Keurig Dr Pepper acquired Dutch coffee and tea company JDE Peet's NV. Malik said that despite concerns about US consumer spending due to the Middle East conflict, it has not deterred companies from pursuing M&A deals. He pointed out, "Despite some weakness in the macroeconomic environment, corporate boards remain confident in pushing forward transformative M&A transactions." Malik made these remarks following the conclusion of the global consumer goods conference held by Deutsche Bank Aktiengesellschaft in Paris. The conference brought together senior executives from 120 companies, including the top management of companies like Coca-Cola Company and L'Oral Group. Malik also stated that as consumers become more localized and demand for products increases, achieving economies of scale in key markets is becoming increasingly important. Global companies need to adjust their product strategies based on local consumer preferences. He said, "We are seeing this trend in the food and beverage industry as well as in the beauty brand sector." Malik also pointed out that continuous wars and industry transformation brought by the application of artificial intelligence (AI) have made investors highly focused on sales growth. He said, "Any company lagging behind in sales growth trends will be punished by the market. Meanwhile, the ability of consumer goods companies to maintain profit margins is also under strict scrutiny, leaving little room for error."