Jan M&A deals in Asia Pacific drop 40% in value

The value of Asia Pacific-focused merger and acquisition deals reached $20.1 billion in January this year, a decline of 40% from that in the same month last year.

The year 2012 began on a sluggish note in the merger and acquisition space, as in the corresponding period a year ago (from January 1 to January 29) the cumulative M&A deal value amounted to $33.5 billion from 830 transactions, according to the data provided by global deal tracking firm Dealogic.

For the week ending January 29, the Asia Pacific (excluding Japan) targeted M&A volume totalled $4.9 billion taking the year-to-date announced volume totals $20.1 billion.

A sector-wise analysis showed that the finance sector led the industries in volume terms last week with total deal value of $3.4 billion from two transactions. In number terms, the technology sector was the leader witnessing seven deals of worth $287 million last week.

South Korea was the largest targeted nation in Asia Pacific (excluding Japan) with three deals worth $3.3 billion.

The largest deal in Asia Pacific (excluding Japan) last week was the repurchase of redeemable preferred shares of Shinhan Financial Group Co for a total consideration of $3.3 billion.

Morgan Stanley is the leading M&A deal adviser in the Asia-Pacific (excluding Japan) this year so far with three deals worth $2.8 billion under its belt.