M&A activity slows down in Asia-Pacific region

M&A activity slows down in Asia-Pacific region


New Delhi: The Asia Pacific region has witnessed the weakest trend in terms of merger and acquisition deal volume as well as value in the third quarter of this year, with the M&A volume dipping to $111.65 million, half of the amount achieved this time last year, says a report.

“The third quarter brought sharp declines for Asia- Pacific, both in deal numbers and values... the September quarters $111,65 million worth of deals was half the amount achieved this time last year, and by far the weakest result since the onset of the crisis," global deal tracking firm Zephyr said.

Japan was the most sought after nation with six of the top 20 deals targeted towards firms based in that country. Australia followed suit with five deals and China was in the third position with four deals.

Of the top 20 deals, only one was from India. “India was not a popular target for high-value deals, and the $900 million minority stake taken in Swan Telecom by the UAE’s Emirates Telecommunications was the only transaction to feature in the top 20," the report added.

The oil and gas sector topped the table this quarter with ConocoPhillips $7,910 million purchase of 50% of Origin Energys coal and liquefied natural gas assets. The pending acquisition of GE Consumer Finance by Shinsei Bank came to a close second at $5,431 million. While, the $2,765-million purchase of another energy sector target, Senoko Power of Singapore was in third place.

The September quarter was a bad quarter in monetary terms as the total PE deal value amounted to $2,155 million, down by two-thirds from the same quarter last year and 74% lower than in Q2 2008.