Goldman Sachs CEO Optimistic About Future Dealmaking

By Lananh Nguyen, Nupur Anand and Saeed Azhar

NEW YORK (Reuters) – Goldman Sachs CEO David Solomon stated on Tuesday that deal-making in equities, mergers, and acquisitions could surpass 10-year averages next year.

> "I think in 2025 we will certainly be at 10-year averages. We might even be ahead of 10-year average," Solomon said in an interview at the Reuters NEXT conference in New York.

Since Donald Trump’s U.S. presidential election victory, bankers have become more optimistic about deals. Some predicted a pro-business environment with friendly regulators potentially easing regulations, though many felt it was early to assess the incoming administration's economic policies.

> "I am quite optimistic that this administration is going to run a very, very pro-growth agenda," Solomon mentioned.
> "The first 100 days will give us some indication about the balance of trade, immigration, energy, and tax policies."

Goldman Sachs has fared well from a resurgence in investment banking over the last year, solidifying its top position in global mergers and acquisitions advising.

In a significant deal this year, Goldman advised Cheez-It maker Kellanova, which reached an agreement to be acquired by candy giant Mars for nearly $36 billion in August.

Chief Financial Officer Denis Coleman has expressed expectations that "strategic" company deals will accelerate in 2025, including major mergers and acquisitions. Although private equity buyouts have been slow, bankers anticipate a rise in activity next year.

Meanwhile, Goldman is downsizing its consumer business, which Solomon previously championed, after incurring losses and prompting asset sales and writedowns. The bank is refocusing on traditional investment banking and trading.

When asked about cryptocurrencies, Solomon stated regulatory changes are needed for the bank to trade them.

> "That's a question you have to ask regulators. Currently, as a regulated banking institution, we're not allowed to own a cryptocurrency like Bitcoin as a principal," he explained.
> "We provide advice to clients around these technologies and issues but our ability to act in these markets is extremely limited from a regulatory perspective."

Solomon, who became CEO in 2018, affirmed his intent to remain in the role as long as the board desires.

> "I’ve got a great job and I’ll be the CEO as long as the board wants me to be."

To view the live broadcast of the World Stage go to the Reuters NEXT news page.