Merger and acquisition deals in Asia Pacific region decline in 2024
May 17, 2024
New Delhi [India], May 17 : Mergers and acquisitions (M&A) in the Asia-Pacific region (APMC) again dipped 9.3 per cent from January to April 2024 compared to the same period in 2023. A total of 4,478 deals (mergers & acquisitions (M&A), private equity and venture financing deals) were announced in the Asia-Pacific (APAC) region. A total of 4,935 deals were announced during the same period in 2023, according to GlobalData, an analytical company.
Nevertheless, the region experienced the lowest downturn among all regions, showcasing its enduring appeal to investors,
Meanwhile, several key markets within the region witnessed a decline in deal volume. For instance, deal volumes for China, Japan, Australia, Singapore, Malaysia, Hong Kong, Indonesia and Thailand witnessed year-on-year declines of 15.8 percent, 1.2 percent, 7.9 percent, 15 percent, 30.7 percent, 15.8 percent, 17.9 percent and 11.1 percent, respectively.
The number of deals announced in North America, Europe, the Middle East and Africa and the South and Central America regions fell by 26.1 percent, 19.9 percent, 11.3 percent, and 29.3 percent, respectively. These are relatively higher compared to the decline registered for the APAC region.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: "Subdued deal activity remained a global trend during the review period and all the regions experienced a decline in deal volume. Even though the APAC region registered a decline but it is the lowest among all the regions. In fact, APAC was the only region to see a single-digit decline in deal volume during January-April 2024 compared to January-April 2023."
The report further added that all the deal types under coverage registered a decline in volume. The number of M&A, private equity and venture financing deals declined by 11.7 percent, 28.7 percent and 5.7 percent, respectively, during January-April 2024 compared to January-April 2023.
Bose concludes: "APAC's relatively modest decrease signifies resilience in the face of broader economic challenges. This resilience underscores the region's enduring appeal to dealmakers and highlights its potential for sustained growth in the deal landscape. Despite headwinds, opportunities abound, and strategic dealmakers would be wise to remain vigilant, identifying pockets of value amidst the shifting tides of the market."
