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JPMorgan i-banker: Trump's victory has had 'chilling effect' on deal activity

A JPMorgan Chase & Co. investment banker said he has had three separate deals collapse since the 2016 U.S. presidential election and cited widespread uncertainties surrounding President Donald Trump's tax policy for contributing to a slowdown in M&A activity, Bloomberg News reported.

Trump's surprising victory has produced a "chilling effect on deal activity," JPMorgan investment banker John Purcell told Bloomberg, creating a dynamic where it has become nearly impossible to develop a "price-adjustment mechanism" for the sweeping tax changes proposed by the administration.

During a June 7 appearance at an S&P Global Ratings conference in New York City, Purcell said one deal related to a corporate inversion, where a U.S. company is legally domiciled in a foreign country for tax purposes, while two others involved handshake agreements on valuations prior to the election.

Separately, Nigel Frudd, head of global M&A at Sompo Holdings Inc., said at the conference that the exportation of capital and earnings overseas have spurred several cross-border acquisitions in the insurance industry. In March, Sompo Holding completed its acquisition of Endurance Specialty Holdings Ltd. in a deal valued at $6.3 billion.