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Low central bank interest rates may have played a part in big business consolidation. Large mega corps can borrow money at extremely low rates. Because of thi
by nostromo 8y ago
Low central bank interest rates may have played a part in big business consolidation.
Large mega corps can borrow money at extremely low rates. Because of this infinite access to capital, they can more easily acquire their competition.
Even if a company uses equity to purchase a competitor, they can counteract the dilution with financed stock buy backs.
Money may be too cheap for big companies and too scarce for small companies.