APAC M&A Hits 5-Year Low

APAC M&A Hits 5-Year Low

2019 mergers and acquisition activity in Asia Pacific, excluding Japan, reached the lowest levels in five years, according to Dealogic data, fuelled by a global slowdown and an ongoing U.S.-China trade war.

M&A deal value in 2019 totaled $667.8 billion, a 10.3 percent year-on-year drop and the lowest volume since 2014’s $679.3 billion. Tech, property and finance-related deals dominated the field representing $111.2 billion (43 percent decrease); $82.2 billion (21 percent decrease); and $74.8 billion (40 percent increase).

The largest 2019 deals in the region included an $18.7 billion acquisition of Singapore logistics provider GLP’s U.S. industrial warehouse assets by Blackstone Group and a $15 billion acquisition of a 20 percent stake in Reliance Industries’ oil and chemical business by Saudi Aramaco. Other notable deals include a $15 billion investment in India’s Tzar Aerospace Research Labs by Singapore’s Dreamvision Overseas and a $14 billion capital injection into China’s troubled Hengfeng Bank, whose former chairman was recently sentenced to death over corruption charges. 

In terms of M&A advisory in Asia ex-Japan, Morgan Stanley topped the league table ranks in 2019 ahead of Goldman Sachs and Bank of America, according to Dealogic, with the three covering $264.5 billion of deals in the region.

Global M&A

Global M&A deal value dipped to $4.09 trillion in 2019, compared to 2018’s $4.11 trillion, according to Dealogic.

U.S. was the primary driver, accounting for almost half of global volumes with the largest deals that include: a $135 billion merger of United Technologies and Raytheon; a $74 billion acquisition of Celgene Corporation by Raytheon; and a $63 billion acquisition of Allergen by AbbVie. 

Meanwhile, the second-largest economy in China continues its three-year trend of slowing outbound deal activity reaching $53.4 billion last year – the lowest since 2010, according to Dealogic.