Global mergers and acquisitions at tipping point, with Asian firms aggressive buyers, says JP Morgan
Chinese companies account for almost half the record US$1.2 trillion in deals struck by Asian firms this year
Global mergers and acquisitions (M&A) activity is entering a turning point, with Asian companies coming to the fore, having struck a total of US$ 1.2 trillion worth of deals this year.
Asian firms, and especially Chinese ones, are increasingly betting on cross-border acquisitions for future growth, with 88 per cent of them identifying themselves as net buyers, according to a survey released on Thursday by JP Morgan.
“To meet the demands of this more consumer-driven economy, and bring their products to a broader range of customers, Asian companies are seeking value-added products, services, technologies and management skills in their acquisitions,” it said, following the survey of 55 companies in nine Asian regions between July and October.
Asian firms snatched a record of 30 per cent of a total of US$4.2 trillion in deals seen this year, compared to a 10 per cent to 15 per cent share in the past, according to Dealogic data.
“What we are witnessing is a secular trend. Chinese companies are seeking to expand globally and buying trophy assets, backed by strategic government support and low costs of capital,” said John Hall, managing director and co-head of Asia M&A at JP Morgan.