M & A deals of Asia-Pacific enterprises exceed 725 billion USD in 2020


M & A deals of Asia-Pacific enterprises exceed 725 billion USD in 2020

The total value of 10 major M&A deals in Asia – Pacific (excluding Japan) accounts for 23.5% of the total value of M&A for the whole year.

In 2020, although the total value of mergers and acquisitions (M&A) of enterprises globally decreases by 6.6%, the total value of M&A of enterprises in Asia-Pacific region (excluding Japan ) was still up 26.1% to US $ 725.7 billion, while the total number of deals decreased by 6.7% to 3,696 transactions.

According to the Mergermarket report, in 2020 the total M&A value of global enterprises will reach 3,163 billion USD, of which 2,200 billion USD will be made in the last 6 months. This is the highest record in half a year since Mergermarket tracked global M&A activities up to now. In addition, the total transaction value of the fourth quarter of 2020 reached $ 1,200 billion, the quarter reaching the highest value since the second quarter of 2007 up to now.

In the Asia-Pacific region (excluding Japan), 10 major M&A deals accounted for 23.5% of the total value of M&A for the whole year, of which the top 5 M&A target audiences are concentrated in China, and M&A transaction value is over 10 billion USD. M&A activity in this area surged in the third quarter of last year, including 933 deals with a total value of 252.5 billion USD, becoming the second highest transaction value quarter since Mergermarket tracked M&A activities. of this area. At the same time, M&A activities in the fourth quarter of 2020 continued to maintain a strong trend in Asia – Pacific when it recorded 1,138 deals with a total value of 206.4 billion USD due to the positive recovery of Asian economies. after pandemic control of acute respiratory infections COVID-19.

The report emphasizes that China’s state-owned enterprise sector reform has promoted industrial integration and upgrading, which is a major driver of M&A activities in 2020, and will continue to support this activity. in the year 2021.

Also according to the report, M&A activities in the Asia-Pacific region (except Japan) will be more affected by geopolitical events. With regional tensions escalating or defusing, success or failure of a US strategy promoting supply chain relocation out of China, existing trade agreements could be upgraded … will be Strong indicator of investment flow trend in the coming time.

On the other hand, according to the latest report by Refinitiv, under the push of the total number of M&A transactions and value of M&A transactions in the last 6 months of 2020, respectively increased by 85.5% and 24.1% over the same period Previous year, the value of M&A transactions in 2020 of Asia-Pacific enterprises (excluding Japan) increased by 10.3% to 1,000 billion USD. As key economies apply travel blockade and restrictions to control the spread of the COVID-19 outbreak of the SARS-CoV-2 virus, M&A transactions in the first 6 months of 2020 ( except for Japan) fell to its lowest level since 2013.

Refinitiv’s report emphasizes that in 2020 there will be at least 23 major transactions (at least 5 billion USD) with a total value estimated at 213 billion USD, up 70.9% in value and 76.9% in number quantity over the same period last year. Among the deals related to the Asia-Pacific region, most of the targets are focused on the energy sector, accounting for 16.9% of the total value (equivalent to 173.6 billion USD). of the entire Asia-Pacific region, nearly double the figure of the same period of the previous year.

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