In just over a month, three of Minnesota's largest businesses have been acquired by outside companies.
First it was Valspar, the paint company that in late March announced it would be acquired by Sherwin Williams. Then it was the Carlson hotels business, scooped up Wednesday by a Chinese conglomerate called HNA Tourism Group. And then Thursday, Abbott Laboratories, a Chicago-based company, said it will be acquiring St. Jude Medical.
The mergers have come on what appears to be the tail end of a national wave of deal making.
Three forces are at work. Interest rates are expected to rise over the next few years, which pushes buyers to lock in deals while financing is cheap. Second, the cycle itself forced some companies to conclude they can't keep up with rivals who have already made deals, which leads them to become sellers. And then, there's the fear that the next recession is closer than the last one.
"You've got an approaching storm for companies that are kind of plateaued or down," said Peter Clark, a scholar of mergers at University College London.
Recession fear, in particular, fuels mergers and could fuel more in Minnesota. One potential target is General Mills, the giant food company whose revenue has been flat or slightly negative for three years.
The firm's stock price, despite its operating performance, is up nearly 20 percent over the past 16 months. Big food has seen a wave of consolidation in recent years, and Clark said General Mills' stock price is a sign investors believe an acquisition could happen.
"I'd suggest that there is a built-in anticipatory purchase premium already in General Mills' price," Clark said.