Image credit: Bain & Co.
M&A deals in the Asia Pacific cooled down in 2022, with the region’s overall transaction value dropping 22% year on year, according to a Bain & Company report. It fared better than the global average, which decreased 36% last year compared to 2021.
India, however, bucked this trend by logging an all-time high for both strategic M&A deal volume and value. Bain’s fifth annual Global Mergers & Acquisitions report found that the country’s total deal value by the end of October 2022 was already roughly 140% higher than all of 2021.
Helping India achieve this feat was the US$40 billion merger between House Development Finance Corp. and HDFC Bank. According to Bloomberg, the deal is expected to be concluded in the second quarter of this year.
In Japan, while deal value fell by 20% in the first nine months of 2022, the volume remained at the same level as the previous year, suggesting a rise in small deals. Unlike 2021, few Japanese companies engaged in large cross-border deals in 2022, according to the report.
China was in line with the global trend, with deal value down 30% year on year.
Globally, M&A deals lagged during the second half of 2022. Notable factors that Bain outlined in the report include regulatory issues, geopolitics, and a pause in megadeals during the middle of the year.
See also: Capital SEA: Southeast Asia’s funding landscape (updated 01 Feb 2023)
Editing by Arpit Nayak
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