Pfizer (NYSE: PFE) has agreed to buy Wyeth (NYSE: WYE) for $68 billion. According to The New York Times, "The deal would not only create a pharmaceutical behemoth but would be a rarity in the current financial tumult: a big acquisition that is not a desperate merger of two banks orchestrated by the government."

A good point and one which may indicate that there is an unexpected wave of M&A coming.

Recent reports from analysts and the media say that the recession will cause huge drops in revenue in industries beyond retailing., Hotels are facing unprecedented leaves of vacancies. Many car parts suppliers are up against cash problems. Airlines are again being challenged by falling revenue as traffic dries up.

The Pfizer deal with Wyeth is more about cost cutting than it is about increasing revenue. Each company has it its own line of drugs. Putting the two companies together do not appear to do anything to improve sales, at least in the early stages. But, the firms believe that they can fire tens of thousand of people as they face having some of their drugs lose patent protection which actually could drive revenue down at the new company.

Many other industries are facing similar troubles and are facing them now. If firms in these sectors cannot sharply reduce costs, they won't be around in a year.

M&A is back, but it is back for reasons that show how ugly the economy is getting.

Douglas A> McIntyre is an editor at 24/7 Wall St.