Asia ex Japan M&A Report – May 2018

Value of M&A in Asia, ex Japan up in May, despite slight month-on-month decline in volume

 The aggregate value of mergers and acquisitions (M&A) deals targeting companies based in Asia, excluding Japan, increased in May, climbing 1 per cent from USD 115,977 million in April to USD 116,671 million. Despite the improvement in value, volume actually declined slightly, slipping from 1,950 to 1,944, over the same timeframe.

 The same trend was evident in a year-on-year comparison, albeit to an even greater extent; in May 2017 there were 2,404 deals worth an aggregate USD 96,490 million. Value was boosted by two large deals worth USD 14,000 million each in May. These two deals, worth a combined USD 28,000 million, together accounted for 24 per cent of total value in the month under review.

 Despite May’s impressive value, the figure still fell short of November and December 2017, when deals worth USD 146,860 million and USD 126,639 million, respectively, were announced.

Chinese targets make up half of May’s top 10 deals

 All of the top 10 deals by value targeting companies based in Asia, excluding Japan, in May were worth in excess of USD 1,500 million, while two deals were joint top for the month. The first of these took the form of a USD 14,000 million Series C injection in Ant Financial by T Rowe Price Associates, Janchor Partners and Discovery Capital Management, among others.

 The other deal worth USD 14,000 million saw Wal-Mart International agree to pick up a majority shareholding in Singapore-based Flipkart.

 The third-placed deal came a distance behind as Wanhua Chemical Group agreed to acquire Wantai Wanhua Chemical for USD 8,209 million. Of the month’s top ten deals, five had a Chinese target, while other countries targeted include South Korea, India and Singapore.

Top Deals in Asia ex Japan Markets by Deal Value (USD million) in May 2018

China tops country rankings by volume and value

 China once again topped the country rankings by volume and value in May, which is perhaps unsurprising given that the country featured in five of the month’s top 10. In all, companies based in China were targeted in 1,189 deals worth a combined USD 68,672 million. In terms of volume, this places it some way ahead of second-placed South Korea, which was targeted in 217 deals, while India placed third with 120.

 In terms of value, Singapore was second, with deal-making of USD 19,735 million. It is worth noting that 71 per cent of this amount is attributable to the aforementioned USD 14,000 million purchase

 Report notes

 Activity is based on the activity of the target company.

 Deal status is announced within the time period.

 The sector breakdown uses targets’ activities as defined to be ‘Major Sectors’ by Zephyr.

 You are free to use any data or commentary from this report in your articles as long as

 the source is cited as “Zephyr published by Bureau van Dijk”.