Global M&A hit hard in first quarter, with trade war and cooling growth taking toll on Asia
- Deal value in China, which accounted for 46.6 per cent of Asia market, almost halved in first three months
- China-targeted M&A activity only reached US$77.8 billion, a decline of 35 per cent
Global deal making activity declined in a chilly first quarter, with Asia hit especially hard by the ongoing US-China trade war, growing economic headwinds and market volatility, according to separate reports from data providers Mergermarket and Dealogic on Wednesday.
The number of mergers and acquisitions (M&A) declined by 30 per cent globally to 3,558, while the value of deals declined by 15 per cent to US$801.5 billion, data compiled by Mergermarket showed.
Large cross-border deals that propelled M&A activity in the past five years “have almost disappeared”. Only nine mega deals – defined as above US$10 billion in value – have been struck, down from 14 in the same period last year.
Cross-border M&A made up only 30.8 per cent of the global pool, lower than an average of 38-40 per cent over the past three years.
Asia, especially China, has been hit hard.
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“The US-China trade war, domestic deleveraging efforts [in China] and increased regulatory scrutiny have made fundraising for private equity and venture capital more challenging,” Riccardo Ghia, research editor for Asia-Pacific at Mergermarket, said in the report.
