Mergers and acquisitions activity has picked up in the last 12 months, as sentiment has finally allowed more deals. Luke Cummings, CIO at Harvest Lane Asset Management, explains that M&A tends to increase later in the cycle as confidence is essential for successful deals. But where will the next one be?

“Valuations are a bit higher, but confidence has increased along with that. Some boards need to see other companies taking M&A action before they’ll do the same.”

Despite the recent flurry of activity, the lithium producers have been conspicuously absent. Cummings believes that these companies could be attractive targets now, with prices having fallen significantly in recent months. In the short video below, he explains what’s driving M&A activity and expands on his view.