Singapore most targeted in Southeast Asia for M&As in 2012

M&A volume reached a record S$51.7b this year.

This is nearly three times the $17.8bn announced in 2011, according to new data from Dealogic. Malaysia was second in the Southeast Asia region with $17.5bn, up marginally on 2011 ($17.3bn).

Singapore led what has been a volume surge for South East Asia M&A, which reached record high volume of $105.0bn in 2012, 53% higher than 2011 ($68.6bn). Despite the increase in volume, activity decreased 19% to 1,894 in 2012 from 2,299 deals in 2011. Average deal size reached a record high of $83m in 2012, 77% higher than $47m in 2011.

Looking at the broader Asia Pacific (ex Japan) M&A deals, the region volume totaled $485.4bn in 2012, down 9% on 2011 ($535.8bn) and the lowest volume since 2009 ($395.7bn). Despite the overall decrease, volume increased each quarter of 2012 from $112.2bn in 1Q 2012 to $133.6bn in 4Q 2012, the highest quarter since 2Q 2011 ($156.6bn).

Asia Pacific (ex Japan) targeted deal count was 9,401 in 2012, down from 11,694 deals in 2011 and the lowest activity since 2006 (8,470). "As a result of the competing bids for Fraser & Neave by Thai Beverage and Overseas Union, totaling $21.9bn, Food & Beverage remained the most targeted sector for Asia Pacific (ex Japan) in 2012 with a record $52.9bn," noted Dealogic.

Dealogic also pointed out that China continued as the most targeted nation in Asia Pacific (ex Japan) in 2012 with $171.7bn, the third highest volume on record. A record 84% ($144.9bn) of China targeted volume was domestic in 2012, up from a 75% share ($140.8bn) in 2011.