mergermarket Greater China M&A Round-Up Q1 2009

2009-04-07 15:05 1026

Greater China M&A figures are down 74% in the first quarter of 2009 hitting lowest level in 4 years

HONG KONG, April 7 /PRNewswire-Asia-FirstCall/ -- Greater China M&A figures are down 74% from the previous quarter -- hitting their lowest level in 4 years, according to mergermarket, the independent M&A intelligence provider.

The mergermarket Greater China M&A round up Q1 2009 released today reports that a total of 123 deals worth US$14.3bn were announced in Greater China in the first quarter of 2009. That represents a 9% decline in total deal value from Q1 2008, and a 37% fall in deal volume. When compared with Q4 2008, deal value was down 74% while deal volume dropped by 35%. This is the slowest quarter in terms of deal value since Q1 2005.

Cross-border activity has been dominated by outbound acquisitions, whereas inbound activity has dropped to $1.6bn over 19 deals. Chinese companies have shown a lot of interest in foreign energy and mining companies, fuelled by sharp falls in commodity prices from their 2008 peaks. In February alone Chinese companies have made offers for four foreign energy and mining firms, including Chinalco's bid for Anglo-Australian miner Rio Tinto, which would be the largest outbound investment by a Chinese company.

The issue of protectionism in cross-border deals was raised when the Chinese Ministry of Commerce blocked Coca-Cola's bid for Huiyuan Juice on antitrust grounds -- the first of such rulings since the new anti-monopoly law was enacted in August 2008. Australians are increasingly concerned with Chinese companies buying up domestic mining resources. The Australian treasurer has blocked Minmetals' $2bn offer for debt-ridden Australian miner OZ Minerals on national security concerns. The two companies went back to the drawing board to negotiate a revised deal.

In terms of league tables, Morgan Stanley has dominated the financial advisory tables by both value and volume so far this year, having advised on seven deals worth US$16.2bn. Having worked on the two largest transactions in the region, Linklaters takes top spot by value in the legal league tables.

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mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service, with the largest network of dedicated M&A journalists on the ground in 65 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa.


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Source: mergermarket