China drives M&A activity 

M&A in emerging markets, driven primarily by China, reached an all-time high of 24 per cent of global deal activity in 2009, according to research by Dealogic.


M&A in emerging markets, driven primarily by China, reached an all-time high of 24 per cent of global deal activity in 2009, according to research by Dealogic.

M&A in emerging markets, driven primarily by China, reached an all-time high of 24 per cent of global deal activity in 2009, according to research by Dealogic.
 


Deals involving targets in emerging markets reached $564.3 billion in 2009, a 19 per cent decrease on the previous year. Chinese companies remained the biggest targets, reporting a combined deal value of $157.1 billion, while deals with companies from Taiwan saw a 239 per cent rise in total values to $26.9 billion.
 

For the first time, outbound M&A activity involving emerging market acquirers, with a combined value of $157.1 billion (£98 billion), surpassed that of non-emerging markets ($80.2 billion).
 

In contrast, deals with a US target fell by 24 per cent to $783.4 billion, the lowest level since 2003. European M&A activity decreased by 44 per cent to $718.5 billion. 
 


The research also reveals that the total value of global distressed deals reached $320.2 billion, the highest annual amount to date. The number of bankruptcy-related deals in Europe rose by 264 per cent to 466, with the UK accounting for 37 per cent of targets. 
 


In addition, government-backed M&A set a record, accounting for 15 per cent of activity, and a combined value of $354 billion. This was led by the UK government’s $41.8 billion share placement in Royal Bank of Scotland, taking its stake to 84.9 per cent.
 

While 2009 saw an increase in distressed and government-backed M&A, private equity deals were significantly reduced. The value of buy-outs fell by 60 per cent to $75.9 billion, the lowest level since 2001.

Nick Britton

Lexus Ernser

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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