M&A deals in Asia-Pacific subdued but India could buck trend: S&P Global Market Intelligence
S&P Global Market Intelligence in its latest report has said that the mergers and acquisitions (M&As) in Asia-Pacific's finance sector are unlikely to pick up soon, as economic uncertainties, higher funding costs and geopolitical risks dent dealmakers' confidence.
According to the report, deal volume in the finance sector dropped almost 14 per cent year-on-year during the quarter ended March 31, dragged by a decline in mainland China and Australia. Deal activity in the Asia-Pacific region broadly mirrored global trends. Global merger and acquisition announcements in the quarter fell to 9,022, the lowest total since the onset of the Covid-19 pandemic, which disrupted markets in the second quarter of 2020.
The report further noted that just nine finance sector deals were announced in mainland China in the first quarter, compared with 24 the year before. In Australia, investors struck 12 deals in the sector, down from 26 a year earlier. As per the report, however India, the fastest-growing large economy in the world, could buck the trend. India reported a one-deal increase in volume year-on-year in the first quarter.
