CNBC reported on Oct. 6 that M&As in Asia are still alive and kicking despite concerns over the stagnation of economic growth.
According to market research firm Dealogic, non-Japanese companies in the Asia-Pacific region signed M&A deals worth US$770.9 billion in total between Jan. and Sept. this year. The amount reached US$1.68 trillion for the United States and US$745.4 billion for Europe during the same period.
In particular, the amount totaled US$384.3 billion for China, increasing by close to 50 percent from a year ago. It was followed by Hong Kong (US$125 billion) and Australia (US$86.1 billion). Meanwhile, M&As in Japanese companies declined to US$59.2 billion.
The growth in the Asia-Pacific region can be attributed to large-scale deals that increased in number from a year earlier. For example, Itochu Corporation of Japan and the Charoen Pokphand Group of Thailand purchased US$10.3 billion in shares of the Citi Group of China in the first month of this year. Brookfield Asset Management purchased Asciano, an Australian freight logistics company, at US$9.7 billion, and the Japan Post Group took over Toll Holdings of Australia at US$6.4 billion.
Shareholders were another factor that contributed to the M&A boom in spite of mounting financial market uncertainties. A number of companies opted for M&As in order to increase shareholder profits.