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.
