Asia Pacific M&A Market - An Upswing on the Recent Seesaw
The early part of 2013 showed some settling down in the Asia Pacific M&A market after a stellar fourth quarter in 2012.
29 August 2013
The early part of 2013 showed some settling down in the Asia Pacific M&A market after a stellar fourth quarter in 2012. From the heightened number of deals up 21% year over year (though they were down 16% quarter over quarter), Asia Pacific cooled in the first quarter of this year, only to jump back up 31% quarter over quarter, and 45% year over year as the second quarter of the Intralinks Deal Flow Indicator reported.
The seesaw effect in Asia Pacific isn’t uncommon, since the region boasts fast-growing economies that can sometimes prove unpredictable. Even so, dealmaking in the region has clearly seen an upswing in the first half of this year.
One of the fastest growing sectors this quarter was energy, which has seen an influx of high-value alternative energy deals, including many with Chinese targets. Since China is quickly becoming a global leader in green energy, taking advantage of growing global demand for renewables and helping to curb domestic pollution, this move quickly translated into M&A activity. In one of the biggest APAC energy deals of the past quarter, China Resources Power Holdings revealed plans to purchase the Wind Farm Group for US$553 million. With operations all over China, the deal will help the China Resources Power Holdings broaden their energy portfolio and become a player in the space.
The activity this quarter in Asia Pacific shows that this region can be a powerhouse, as long as the confidence in the market continues.
Esther is a senior corporate communications manager at Intralinks. She provides content for internal and external communications activity as well as general corporate positioning in order to support overall company objectives. Esther has been creating communications materials for a variety of organizations and companies for more than 10 years. She graduated from Rutgers University with a degree in English Literature.