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Mainland, HK M&As add market share

2017-10-18 3 ℃

MERGERS and acquisitions on the Chinese mainland and Hong Kong managed to take up a slightly bigger share of activities in the Asia Pacific market in the first three quarters of 2017, although the value and number of M&As both dipped from the same period last year.

The market share of Chinese mainland and Hong Kong M&A deals in the Asia Pacific inched up to 42.9 percent in January to September from 42.8 percent in the same period of 2016 by number, according to a Mergermarket report. The value of the M&As took up over half of the whole deal value in Asia-Pacific, the report added.

However, the mainland and Hong Kong saw 1,228 M&A deals worth US$258.9 billion in the first three quarters of the year, or a 12.7 percent drop in value while the number of deals fell by 52 respectively from the same period last year, the report said.

Domestic transactions continued to drive M&A activities in China as they took up US$238.9 billion or 92.3 percent of the total value. That translated to a rise of 14.5 percent in value and 35 deals in number from 2016.

The industry and chemical sector remained the most targeted on the mainland and Hong Kong both by value and number of deals, representing a 8.5 percent rise in value from the same period last year. Some mega deals included the acquisition of Dalian Shipbuilding Industry for US$3.3 billion by a Chinese consortium led by China Cinda Asset Management, and JPMF Guangdong’s US$3 billion takeover of Lingyi Technology, the report said.

In terms of outbound acquisitions, the mainland and Hong Kong recorded US$110.9 billion spread over 298 deals in the first three quarters.