85% increase in inbound mergers and acquisitions value |
Australian mergers and acquisitions market has seen an 85% increase in inbound value in the FY2008/09 and preliminary figures into the first two months of the new financial year show momentum is being maintained due to strong overseas interest.
To date this financial year, there remains continued interest from overseas buyers. Preliminary figures for the first two months of the year show that Chinese buyers account for around half of all deals by value and Mining and Resources accounting for over 80 percent of all deals by value. However, any sudden increases in commodity prices or adverse currency fluctuations may test this going forward.
According to recently released Deloitte/mergermarket figures, 114 inbound Australian mergers and acquisitions deals worth $A44.3bn were recorded in the 2009 financial year, with particularly strong activity in the first half of 2009. International interest has been strongest from China, Canada, and less so from last years’ American and UK buyers.
Deloitte and mergermarket have released an assessment of the mergers and acquisitions market in the “Adjusting to the downturn: Asian mid-market mergers and acquisitions spotlight’ report.
The report shows there has been a strong tendency to more Intra-Asia cross border deals in the important sectors in Energy, Mining and Manufacturing, with more Chinese, Japanese, Korean and Indian buyers foraging for strategic assets in Australia and South East Asia.
The Deloitte report also shows that Greater China accounted for around one third of overall Asia mid-market volumes in the past five years. 5% of the total Greater China spend in the 2008 calendar year was in the Australasian region.
Click the link below to view the executive summary of the report.
To receive a full copy of the report, please email Heidi van der Laan.
Adjusting to the downturn: Asian mid-market mergers and acquisitions spotlight
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