Singapore M&A slams record, hits all-time high in 1H14

Executives shook hands more firmly and frequently in 2014.

This year’s first-half is the M&A scene’s strongest semi-annual period yet since records began in 1983, as a Thomson Reuters report shows blow-by-blow increases from the same period last year.

Total cross-border deal activity soared 283.5% to US$35.9 billion, as inbound and outbound M&A soared 245.8% and 455.1% respectively. Domestic M&A amounted to US$13.1 billion, a 289.8% increase from the same category last year.

The real estate sector captured most of the market at 27.9%, with deal value increasing 264.4% compared to 2013, owing to the announcement of at least 4 deals valued US$1-billion-and-above, compared to none during the same period last year.

Here’s more:

The spin-off of Frasers Centrepoint Ltd by Fraser & Neave Ltd to its shareholders, valued at US$4.4 billion, is now the biggest-ever real estate deal involving Singapore on record. The Financials, Consumer Staples and Industrials followed closely with 12.8%, 12.6% and 12.6% market share respectively. Meanwhile, Energy & Power, which topped during the first half of 2013, slipped to tenth place as deal value declined 71.8% from the comparable period last year.

Buyside Financial Sponsor M&A activity in Singapore amounted to US$5.2 billion, a significant increase from the first half of 2013 (US$83.3 million), and witnessed the best semi-annual period on record in terms of deal value. This was driven by the pending agreement of an investor group (comprised of COFCO Corp and Hopu Investment Management Co Ltd of China) to acquire a 51% interest in Noble Agri Ltd, a wholesaler of agriculture products, from Noble Group Ltd, for an estimated US$4.0 billion. The deal also bolstered the Consumer Staples to capture 77.8% of the private equity-backed M&A in Singapore. Consumer Products & Services followed second with 21.6% of the market share.