APAC region records 119% QoQ growth in M&A deal value in Q2 2022

The Asia-Pacific (APAC) region saw a growth of 119% in mergers and acquisitions (M&A) deal value in Q2 2022 compared to the previous quarter (Q1), despite significant geopolitical and financial challenges around the world, finds GlobalData, a leading data and analytics company.

India, Australia and China were the top three countries when measured in terms of M&A deal value in Q2, with India accounting for half of the top 20 deals. South Korea, Indonesia, Malaysia, and Japan were the next top countries that contributed to a surge in M&A deal value.

GlobalData’s latest report, ‘Mergers and Acquisitions Deals by Top Themes and Industries in Q2 2022 – Thematic Research’, reveals that among all regions only Europe and APAC (that includes APAC ex-China and China) recorded positive growth in deal value in Q2 2022. Europe posted a 60% growth in deal value during the period.

Snigdha Parida, Thematic Research Analyst at GlobalData, comments:

Despite the major geopolitical and financial headwinds around the world, M&A activity in the APAC region proved resilient in Q2 2022, especially in countries such as India

Snigdha Parida, Thematic Research Analyst at GlobalData

The two biggest deals seen in India in the quarter were the Housing Development Finance’s merger with HDFC Bank for $58.5 billion, and the acquisition of a 25% stake in Adani New Industries by TotalEnergies from Adani Enterprises for $12.5 billion.

Although continued COVID-19 lockdowns have led to a sluggish M&A activity in some countries such as China, the activity is expected to recover in the near future as major Chinese cities including Beijing and Shanghai slowly return to normality.

Parida concludes: “With the progressive lifting of COVID-19 restrictions and stable governance, investor confidence is rising in many Southeast Asian countries. Companies in the region are looking to innovative technologies to remain competitive amid the supply chain disruptions and macroeconomic headwinds.

“Despite the current investor optimism in APAC, rising interest rates and high inflation can still create challenges for the upcoming deals. Global uncertainties like the Russia-Ukraine conflict and the market concerns regarding the impending recession will make companies less likely to undertake deals in the second half of 2022.”