Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
Global corporate merger and acquisition (M&A) activity fell in 2012 from the previous year and was the lowest for deal values since 2010, a survey by Mergermarket shows.
The value of deals, at $US2174.5 billion, was down 2.7% on 2011 but rose 13.3% in the second half. The fourth quarter’s $US672.9 billion-worth of deals was the highest quarter since the corresponding period in 2010 and was up 45.6% on the same period in 2011.
The largest M&A transaction was the $US45.6 billion all-equity takeover of Xstrata by Switzerland-based Glencore International, followed by Japan-based Softbank’s all-cash offer for the US-based Sprint Nextel valued at $US35.5 billion.
Mega-deals in Asia-Pacific (excluding Japan) were up for a second year to 13% of overall M&A value in the region, the highest level since 2008.
Global bidders looking for Asia-Pacific targets favoured Chinese targets, with 627 deals valued at $US126.7 billion, followed by those in Japan (368 deals worth $US72.5 billion) and Australia (397 deals worth $US46.1 billion). A drop-off in energy and mining deals took its toll on Australian totals.
The bidding war for Singapore conglomerateFraser & Neave was the centre of attention in the region in 2012, with companies from Thailand, Indonesia, Singapore and Japan fighting over control.
As a result, Dutch brewer Heineken ended up with F&N’s shareholding in Asia Pacific Breweries, parent company of New Zealand’s DB Breweries.
Private equity buyouts in Asia-Pacific (excl Japan) slid 30.7% on 2011 to $US27.2 billion, the worst year for buyouts in the region since 2009.
Goldman Sachs maintained its place at the top of adviser league tables both globally and in Asia-Pacific,
with Citi and Credit Suisse second and third respectively in Asia Pacific.