M&As in Automobile Sector
It has been found that a total of 654 M&As occurred in the global automobile industry last year. The number, which almost doubled in five years, hit an all-time high last year although the transaction value edged down to US$66.7 billion. South Korea accounted for US$2.53 billion and 34 deals out of the total.
Last year, the number of M&As between the sector and the other sectors totaled 529. Especially, the number of information and communication companies acquired by companies in the automobile industry showed an average annual increase of 40% during the five years and that of the latter acquired by the former increased 50% on average during the same period.
These days, cross-border M&A is one of emerging trends in the global automotive industry. The number of cross-border M&As in the sector increased from 128 to 232 from 2013 to 2017. Last year, this type of M&A accounted for 54% of the transaction value.
In 2017, the cross-border contract ratio of Switzerland, Sweden and France represented 90%, 89% and 70, respectively. On the other hand, South Korea’s ratio stood at 11%. Those of Japan, India and China were 41%, 32% and 21%, respectively.