Singapore M&A down 24.4% to US$18.6b in 1H13

Its the lowest since 2010.

According to Thomson Reuters, the value of announced M&A involving Singaporean companies totaled US$18.6 billion, a 24.4% decline from the first half of 2012, and witnessed the lowest start to a year since 2010 when volume dipped to US$17.4 billion.

Here's more from Thomson Reuters:

During the second quarter of 2013, overall Singapore M&A activity improved in terms of deal value with announced deals amounting to US$11.3 billion, up 56.0% from the first quarter of 2013, despite the 14.2% drop in number of announced deals to 175 from the previous quarter. Completed M&A activity increased 47.9% from the 1H 2012.

Total cross-border deal activity declined 34.8% to US$9.1 billion compared to the first half of 2013, the lowest first-half volume level since 2009 (US$4.7 billion).

Both inbound and outbound M&A activities dropped 28.5% and 36.0% in deal value, respectively, from the comparable period last year. Meanwhile, domestic M&A activity totaled US$3.2 billion, up 17.2% from the first half of last year.

In broader Southeast Asia, deal value fell 29.8% to US$38.5 billion from the first half of 2012. Inbound acquisitions in Southeast Asia reached US$5.8 billion with Singapore accounting for 26.5% of the market activity, and placed second most targeted nation in the sub-region after Indonesia (33.8% market share).

Inbound M&A Volume Drops 28.5% - Lowest Since 2004

Foreign acquisitions targeting Singapore-based companies reached US$1.5 billion so far this year, a 28.5% decline from the first half of 2012, and the lowest start to a year since 2004 when deal value for inbound acquisitions fell to US$1.1 billion.

Acquisitions from Hong Kong captured majority of Singapore’s inbound M&A activity with US$574.9 million, up 32.4% from the first half of 2012, and accounted for 37.5% of the market share.

The bulk of the inbound transactions targeted Singapore’s Energy & Power sector with 14 announced deals worth US$645.1 million, more than double the value in the first half of 2012.

FPM Power Holdings Ltd, a majority-owned unit of Hong Kong’s First Pacific Co. Ltd and Manila Electric Co. of Philippines, acquired a 70% interest in GMR Energy (Singapore) Pte Ltd. for S$600 million (US$481.7 million). The deal pushed Energy & Power sector to capture 42.1% of Singapore’s inbound M&A.

Outbound Acquisitions Drops 36.0% from the First Half of 2012

Overseas acquisitions from Singapore companies slowed down this year as deal value dropped 36.0% to US$7.6 billion. This is the lowest start to a year since 2010 when volume dropped US$7.2 billion.

Majority of Singapore’s outbound acquisitions were in the Real Estate sector with US$2.4 billion, a substantial 460.5% growth compared to the first half of 2012 and witnessed the strongest first half volume since 2010 (US$2.8 billion).

Meanwhile, the Government of Singapore Investment Corp Pte Ltd (GIC) completed a bankruptcy sale to acquire the luxury resort properties of US-based MSR Resort Golf Course LLC (MSR) from Paulson & Co Inc (which included Wailea Resort Hotel & Spa). Concurrently, GIC completed a bankruptcy sale to acquire La Quinta Resort & Club, Claremont Resort & Spa, PGA West, and The Arizona Biltmore units from MSR.

The combined estimated value of these deals reached US$1.5 billion, driving Media & Entertainment sector to capture 29.4% of Singapore’s outbound M&A activity. The deal bolstered the Media & Entertainment sector significantly as deal value jumped to US$2.2 billion from US$49 million during the first half of 2012.

In terms of value, United States captured a huge portion of Singapore’s outbound M&A activity with US$1.9 billion, up 143.5% from the comparable period last year, and captured 25.4% of the market share. However, China saw the most number of acquisitions from Singapore with 25 announced deals so far this year worth US$1.7 billion.

Advisory Fees for Completed M&A Deals Up 26.4%
According to estimates from Thomson Reuters/ Freeman Consulting Co., M&A advisory fees from completed transactions in Singapore totaled US$86.7 million so far this year, a 26.4% increase from the comparative period in 2012.

JP Morgan takes the lead in the fee rankings for completed M&A deals in Singapore with US$8.9 million in related fees, capturing 10.3% wallet share so far this year.