The US dollar has been steadily decreasing since the IT bubble burst at the beginning of this century. The decline recently was quite sharp raising many issues and bringing with it market instability the world over. While the general sentiment following the depreciation of the dollar is that of uncertainty, many have benefited from the weakening of the mighty dollar.

The enhanced affordability of the US dollar has increased the buying power of global businesses with the result that anybody who wanted to have a piece of American pie now has their shot. Not only has the import of US goods become less expensive but also it is now cheaper to invest in the infrastructure required to set up a company in the US. It is not surprising then that European countries too have joined the bandwagon. European buyers are busy identifying suitable assets in the US and consolidating them faster than ever before.

Data shows that last year, the Euro gained 15% against the US dollar. Industry gurus predict a further decline in the value of the dollar with no respite in the near future. With the US having become the biggest bargain territory, European organizations are headed that way.

Data for 2007 shows that European countries collectively invested $150 billion acquiring US companies. This is $21 billion more than Europeans spent in 2006 in consolidating assets in the US. Evidently, US organizations have never been so attractively priced. European investments in the US market are the highest since 2000.

Last year, some major buyers from Europe were Astra Zeneca, Nestlé and Siemens. Astra Zeneca clinched the biggest deal of 2007 acquiring MedImmune, a biotechnology organization for $14.7 billion. In the same league, Deutsche Telekom bought US based SunCom Wireless for $21 billion.

A comparison with earlier M&As indicates that in 2007, US acquisitions were only 10% of all European foreign deals. Whereas, Europe's American acquisitions formed a significant 21% of all mergers and acquisitions in 2000. Though the volume of European countries buying US companies may seem to have decreased when compared with previous years, alliances being formed now are quite strategic.

The weakening dollar may have proved to be a boon for foreign investors sparking a row of mergers and acquisitions from foreign quarters. Mergers and acquisitions are a part of the dynamic global economy and open markets. Buyers invest in assets looking for their transformation to growth in the future. All of these factors come together to make the US a particularly lucrative market for foreign investment.