Nervous directors halt M&A action. Lower interest rates will definitely lead to a pick up in merger and acquisition activity. What is holding back M&A activity right now, according to Geoff Wilson, is a lack in business confidence from Company directors. Wilson says, Directors are looking at their own businesses and they are a bit nervous because the economy really hasn't picked up. What needs to happen is for there to evidence of the benefit of the current low interest rates flowing through to the economy and then there will be a pick up M&A activity. Wilson expects the majority of activity to take place in the small to medium end of the market and anticipates continued interest from offshore bidders for strategic Australian assets. As far as specific examples - Wilson says a take over of Bega by Fonterra would make sense at some point in time.