SE Asian M&A, which took a hit in COVID-marred 2020, looks poised for a rebound this year
April 30, 2021
Historically, global M&A activities have been hit by major financial crises. The dot-com bubble (2001), the global financial crisis (GFC, 2008), and the economic slowdown caused by trade hits (2015) resulted in 24-48% lower overall M&A deal values in the year following the crises.
In volume terms, M&A deals have swayed in both directions. It fell 22% year-on-year following the dotcom bubble but, by and large, remained flat post-GFC and the 2015 trade hit, show data compiled in DealStreetAsia’s latest report M&A in SE Asia: What’s next?.
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PHILIPPINE corporate entities are beginning to invest more in the sectors of technology and consumer goods through mergers and acquisitions (M&A), while the Southeast Asian (SEA) region is expected to be the hotbed for M&A transactions in the coming months.
The 23
rd edition of EY Global Confidence Barometer surveyed over 2,400 executives in 52 countries, 185 of whom are from Southeast Asian (SEA) countries Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
In the Philippines, companies are said to have already started on M&A moves.
âThe survey showed that the financial services, oil and gas, and power and utilities sectors are among the most acquisitive sectors in the Philippines,â Noel P. Rabaja, strategy and transactions leader at SGV & Co., said.
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PETALING JAYA: The pace of mergers and acquisitions (M&As) in Malaysia, which has been affected by the Covid-19 pandemic, is expected to gain momentum going into the second half of the year.
According to experts from professional services firms, the positive momentum is expected to be supported by low interest rates, accommodating capital markets and ample private capital environment.
Although the number of M&A deals in the country may not be as high as in 2019, it is expected to pick up steam this year.
Experts also opined that the M&A landscape could return to the pre-Covid 19 pandemic levels in 2022.