LegalWeek.com reported this week that “Deal flow and value in the Asia Pacific, excluding Japan, last year soared to its highest level since 2001, according to new data from Mergermarket. Â The region saw 2,577 deal announcements in 2013 compared with 2,297 in 2012, marking a year-on-year rise of 18.2%.”
“The Asian market was particularly strong in Q4,” the report continued, “with the value of deals topping that of all other parts of the world and up 41.8% compared with the same period in 2012. The region also saw the highest increase in deal value from Q3, up 12.2%.”
But as Allen & Overy reported: Â “Most [Asia] cross-border deals were intra-regional, as U.S. and European companies continued to look for deals closer to home. That has created a virtual ring fence around the Asia Pacific region, but one that looks temporary.”
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In particular, as the Bangkok Post reported recently: Â “Japanese companies’ mergers with and acquisitions of Southeast Asian firms hit a record high of 99 in 2013, up 26.9% from the previous year, [as] Tokyo-based M&A adviser Recof Corp [outlined in a recent report].”
Sectoral, Geographic Focuses
“In terms of sectors, energy, mining and utilities M&A remained the most active during the year, with deals worth $93.9bn, up 43.4% from 2012 when value was $65.5bn. Â However, real estate saw the biggest increase in value and deal count, topping $36.7bn compared with $11.5bn in 2012 – a rise of 219.1% – and witnessing a 49.4% surge in volume from 81 deals in 2012 to 121 last year. Â Pharmaceuticals, medical and biotechnology was another robust sector, recording the second highest increase in deal flow from 153 to 195, and marking a 32% rise in value from $12.5bn to $16.5bn.”
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“Looking at cross border deals, Mergermarket said Africa and Middle East saw a significant amount of investment from Asia last year, with the transactions into these markets worth $18.8bn against $7.1bn in 2012 – a 163.4% jump. The annual total of outbound deals into the region thus accounted for 23.4% of total outbound investment from Asia, up from 8.7% in 2012.”  LegalWeek.com continued.
Australia a high-point
Finaly, Allen & Overy reported that “Sentiment in Australia is noticeably more optimistic. With federal elections out of the way, a solid rebound in the equity markets, and the currency becoming more competitive again, potential acquirers seem to be warming to the political and economic fundamentals and considering deals.”
