, China

AsiaPac M&A volume hits record volume of US$449.1b

And China is still the most targeted nation with US$103.5 billion or 30.5% of Asia Pacific-target M&A.

According to Thomson Reuters, Australia followed capturing 27.5% market share.

Here’s more from Thomson Reuters:

As of end-preliminary date, the value of Asia Pacific-involvement announced mergers and acquisitions (M&A) activity, excluding Japan, hit a record volume of US$449.1 billion, a 15.9% increase from the first three quarters of 2010 despite the 7.1% decline in number of deals. M&A activity so far this quarter decline 20.7% from 2Q 2011 when dollar value reached US$170.0 billion. Total cross-border M&A slipped 1.1% to US$261.6 billion, from first three quarter in 2010.

Despite a 62.9% growth so far this quarter from 2Q 2011, outbound activity declined 8.5% to US$132.3 year-to-date, compared to US$144.5 in the first nine months of 2010. Meanwhile, domestic activity and inbound acquisitions grew this year by 19.0% and 7.7%, respectively, compared to the January through September volume last year.

China remains as most targeted nation

M&A targeting Asia-Pacific companies amounted to US$339.3 billion in dollar value. Chinese companies continued to be the preferred target by both domestic and foreign acquirors capturing US$103.5 billion, or 30.5% of Asia Pacific-target M&A. Australia followed capturing 27.5% market share. United Kingdom accounted for 20.2% of inbound cross-border acquisitions in terms of dollar value, or US$26.1 billion; however, United States had the most number of deals involving inbound acquisitions in Asia Pacific with 344 deals.

Materials and Energy & Power Continues Momentum

Companies from the Materials sector were the most sought after targets for Asia-involvement acquisitions reporting 1,509 deals worth US$84.6 billion – 8.4% higher than the volume in 2010 – marking it the busiest year-to-date on record. Metals & Mining accounted for 73.8% of the Materials sector, or US$62.4 billion from 921 deals.

Meanwhile, the flurry of deal-making activity in Oil & Gas (US$57.6 billion) pushed the value of transactions in the Energy & Power sector to US$77.1 billion to date, putting 2011 ahead as having the highest year-to-date volume for the industry.

India Exceeds China’s Private Equity-backed M&A Activity

Total private equity-backed M&A in the region reached US$25.4 billion, a 41.0% increase from the first nine months in 2010, and the highest year-to-date volume since 2007 (US$28.5 billion). The bulk of activity was in the Financials industry, with US$5.4 billion generated across 45 transactions. Notably, the value of 105 private-equity backed deals in India reached US$4.9 billion, barely exceeding China’s US$4.8 billion from 96 deals. 

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