India second favoured for M&As in APAC banking space

India second favoured for M&As in APAC banking space

New Delhi: India has emerged as the second most targeted nation for mergers and acquisitions in the Asia- Pacific banking industry with deals worth $10.3 in 2007 so far, a report shows.

According to the data compiled by global consultancy firm Dealogic, total value of M&As - domestic and cross border - in the banking space in Asia-Pacific jumped to $70.5 billion in 220 deals during the first eight months, up 40% from $50.5 billion through 197 deals a year ago.

With 72 deals valued at $36.3 billion, Japan leads the tally, followed by India and South Korea. South Korea recorded 10 M&A deals valued at $7.6 billion, the Dealogic data showed.

Meanwhile, cross-border M&As touched $23.8 billion in 69 deals in 2007 so far. The figures nearly doubled from $12 billion through 45 deals during the same period last year.

Interestingly, the top five deals this year accounted for 46% of the total volume, compared to just 15% last year. The top five deals were led by the acquisition of 59.74% stake in State Bank of India by the Indian government for $8.7 billion from the country’s central bank - Reserve Bank of India.

Japan accounted for three of the top five M&As -- acquisition of 56% stake in Nikko Cordial by Citigroup for $7.9 billion, buyout of Mizuho Securities by Shinko Securities for $6.5 billion and Mitsubishi UFJ Financial Group acquiring 37.22% in Mitsubishi UFJ Securities.

South Korea accounted for the fourth largest deal with UK-based HSBC Holdings acquiring 51.02% of Korea Exchange Bank for $6.3 billion.