Shares of Companies with Big Merger Plans Jump After Trump Election

Donald Trump’s re-election and his call to cut government regulation on Wednesday helped boost shares of companies hoping to get regulatory approval for their mergers.

Discover Financial Services (DFS) was among the best-performing stocks in the S&P 500 Wednesday afternoon. Its plan to be purchased for $35.3 billion by rival Capital One Financial (COF), announced in February, hit a snag last month when New York Attorney General Letitia James announced she was investigating the deal.

Discover shares were recently some 18% higher. Discover’s stock was up by a similar percentage.

Shares of Kroger (KR) and Albertsons (ACI) also gained Wednesday. Their planned $24.6 billion merger has been held up for months by both federal and state regulators who have raised concerns about lack of competition if the two grocers joined together. Kroger added nearly 4%, while Albertsons rose more than 2%.

Similar sentiments may also be lifting shares of Cleveland-Cliffs (CLF), which were recently up some 22%. The company might now have a better chance of taking over U.S. Steel (X), which in August 2023 rejected its unsolicited $7.25 billion buyout offer and instead agreed to be purchased by Japan’s Nippon Steel. Trump has said he would block the Nippon Steel purchase, arguing that U.S. Steel should remain an American company.

Cleveland Cliffs’ shares are also recovering from a drop earlier this week after it reported its latest financial results, turning in a GAAP net loss of $230 million. U.S. Steel stock was recently up 8%.