Optimism for Asia Pacific’s M&A activity: Herbert Smith Freehills

Optimism for Asia Pacific’s M&A activity: Herbert Smith Freehills

10 March 2017

Herbert Smith Freehills

 

According to Herbert Smith Freehills’ fourth annual Asia Pacific M&A Review, Asia Pacific’s M&A markets enjoyed a solid 2016 with record-breaking activity levels in a number of countries including several emerging markets that exceeded expectations to become significant players in the region.

Andrew Pike, Herbert Smith Freehills’ Head of Corporate, Australia, said: “2016 presented Asia Pacific’s dealmakers with a range of challenges including low commodity prices, volatile capital markets in some parts of Asia, a new US administration, along with the global shock of Brexit.”

“Despite 2016 being less active in terms of deal volumes, Australian deal values were high and the outlook remains promising. We expect to see continued inbound interest, particularly from North America and China.”

“Inspired by the Asciano mega-deal last year, there are also strong prospects for more consortium bids this year, especially at the big ticket end, which will boost both deal volumes and values.”

Lewis McDonald, Regional Head of Corporate, Asia, said: “Despite softening in some areas, M&A activity continued to be healthy across the region, with exceptional growth in China, India and Thailand,”

“We see three key trends for deal making in Asia in the year ahead. First, the scramble for technology assets and skills will only increase, from tech infrastructure through apps and fintech to renewables/hard technologies. Second, we expect a number of domestic markets to rebalance, as Asia continues to mature from a heavy/primary industries focus to consumer goods, tech and services. Thirdly, continued commodities price volatility will sustain M&A across the mining, oil, gas and energy sectors as companies shuffle the assets in their portfolio.”

Click here to read the full review.