Asia-Pac M&A deals jumped 22.1% to US$112.7b in 1Q

It's the strongest start since 2011.

The value of announced M&A deals involving Asia Pacific companies, excluding Japan, totaled US$112.7 billion so far this year, a 22.1% increase compared to a slow start during the first quarter of 2013 (US$92.3 billion). This is the strongest start to a year for the region since 2011 when volume reached US$151.8 billion. This was revealed by Thomson Reuters' Asia Pacific M&A Preliminary Review for First Quarter 2014.

The average M&A deal value for disclosed deals grew to US$98.3 million compared to US$57.8 million in the first quarter of 2013, as deal-making so far this year involving Asia Pacific companies witnessed at least two transactions worth above US$5-billion compared to none during the first quarter of 2013.

Completed M&A activity involving Asia Pacific amounted to US$55.0 billion thus far, a 48.5% decline from the first quarter of 2013 (US$106.7 billion) and the lowest first quarter-level in terms of deal value since 2009 (US$45.4 billion). Number of completed deals involving Asia Pacific, excluding Japan, fell 46.3% to 848 deals.

Among the sub-regions of Asia Pacific, overall M&A activity involving Southeast Asia saw the biggest growth with 90.9% increase to US$24.7 billion compared to the first quarter of 2013. Australasia-involvement followed next with 48.9% rise in deal value to US$18.2 billion.

North Asia, which accounted for a significant portion of Asian involvement M&A, grew 11.3% to US$75.8 billion from the same period in 2013. Only South Asia-involvement M&A activity declined 31.2% to US$3.7 billion from first quarter of 2013.

The report also notes that buyside Financial Sponsor M&A activity in Asia Pacific reached US$9.4 billion so far this year, a 47.7% increase from the first quarter of 2013 (US$6.4 billion), and the strongest start to a year in terms of value since first quarter of 2011 (US$9.8 billion).

The deal value is driven by an investor consortium’s pending agreement to invest up to US$2.4 billion in Singapore-listed Global Logistic Property Ltd and its subsidiary. 

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