Deal Drivers Asia Pacific FY 2019

05 March 2020

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Mergermarket is pleased to present Deal Drivers Asia Pacific, published in association with Merrill DatasiteOne.
                    
This report provides an in-depth review of M&A in the Asia Pacific region, offering insights on notable deals, sector performance and trends that impacted dealmaking in 2019.
                   
Highlights of the report include:
 
  • Despite a fall in deal value in 2019, the annual total still represented a strong return from the region, delivering a steady year overall. Total deal value in Asia Pacific fell to US$651.5bn in 2019 from the 10-year high of US$777.2bn posted the previous year, a more than 16% decline.
  • This fall in deal value was largely caused by declining activity in the technology, media & telecom (TMT) and energy, mining, and oil & gas (EMOG) sectors, falling 45% and 27% respectively. By comparison, a steady performance for life sciences & healthcare, as well as an impressive showing from the industrials, manufacturing & engineering (IME) sector helped to compensate for these drops. As such, the IME sector delivered the lion’s share of value in 2019; with deals worth US$139.7bn, it accounted for 21.5% of the market.
  • China, the region’s largest economy, has seen growth fall in the face of geopolitical tension, largely due to US-China trade tensions through 2019. Looking ahead, there are signs that the geopolitical headwinds stunting growth may dissipate in 2020 with China and the US having approved ‘phase one’ of a new trade arrangement. 
  • While the coronavirus pandemic could offset these positives, Asia Pacific’s long-term economic outlook remains broadly upbeat and supportive of further M&A growth.