Asia spikes in M&A, equity; falls in debt
By Pamela Koh
Thursday, 3 March 2011
The latest market activity in the Asia Pacific region for January 2011 shows a focus on capital markets issuance and M&A, with deals hitting a high of US$84.9bn in Jan 2011.
According to Jones Day Singapore M&A partner Dennis Barsky, the M&A outlook in Asia continues to trend strongly. “A noticeable pick up in both corporate acquisitions and PE buyout activity is driven primarily by the now cash-flushed multinationals, a good interest rate environment and general pent-up demand for acquisitions,” he said.
A sentiment echoed by a number of M&A lawyers, Barsky forecasted strong activity in the natural resources sector going forward, with transactions in the various services industries, technology and manufacturing also picking up momentum. “The early signs are that 2011 will be a very good year for deal advisors.
The latest Thomson Reuters report has shown an overall fall in investment banking activity in Asia. However, China has strengthened its individual IB growth, with a total of US$30bn worth of transactions recorded, up 33% from the same period last year. This is driven by the large rise in equity capital markets with a 36% increase across the region. China has witnessed growth by 39% with activity reaching US$19.0bn.
Meanwhile, debt capital markets and loans activity is slow to start this year with a 19% and 79% decrease respectively, from the same period last year.ALB
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