Barack Obama has signalled he wants to increase capital gains tax (CGT) to pay for his expansion of healthcare. The possibility of him becoming the next US president could lead to a takeover spree over the next six months as companies are likely to look for deals before his proposed tax changes.

Louis Capital Markets (LCM), a New York investment firm, said yesterday concern about higher capital gains taxes could trigger a spate of deals, particularly for families wanting to sell their companies.

The LCM analysis co-incides with the sale of Rohm and Haas, a family-controlled paints and materials company, to Dow Chemical for $18.8bn (£9.5bn).

LCM expects more family-owned companies to be sold in the near future, including Marriott Hotels and Estée Lauder, the cosmetics company. The Lauder family owns 58% of the company and 90% of the voting stock. LCM has identified Procter & Gamble and L'Oréal as potential suitors.

Further reading:

M&A deals defy the downturn

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