PH among top inbound M&A targets in ASEAN

By on February 1, 2018


M&A intelligence service provider Mergermarket has cited the Philippines as among the top targets for inbound merger and acquisition (M&A) deals in Southeast Asia in 2017. (Pixabay photo)
M&A intelligence service provider Mergermarket has cited the Philippines as among the top targets for inbound merger and acquisition (M&A) deals in Southeast Asia in 2017. (Pixabay photo)

MANILA — M&A intelligence service provider Mergermarket has cited the Philippines as among the top targets for inbound merger and acquisition (M&A) deals in Southeast Asia in 2017.

Mergermarket data released Wednesday show that the top three targets for inbound M&A transactions in Southeast Asia in 2017 included Singapore with 123 deals amounting to USD36.1 billion; followed by Malaysia, with 84 deals worth USD14.1 billion; and the Philippines with 32 inbound M&A transactions amounting to USD12.8 billion.

It was noted that 59.4 percent of inbound M&A deals across Southeast Asia involved Greater China-based companies.

Greater China’s M&A transactions in the region ballooned in 2017 to USD33.8 billion from 58 deals from USD8.9 billion in 2016 involving 55 deals.

Moreover, 2017 was a record year for M&A in Southeast Asia as value of transactions jumped by 54.2 percent to USD89.1 billion from USD57.8 billion in 2016.

This is despite the decline in the number of transactions to 431 in 2017 from 454 deals in the previous year.

“This banner year was largely due to Chinese companies’ chase for overseas assets,” the Mergermarket report read.

“Despite the Chinese government’s effort to tighten capital outflow to foreign countries, activity to enhance regional capabilities and infrastructure in Southeast Asia soared with the One Belt and One Road initiative,” it noted.

Meanwhile, Mergermarket data also listed the consolidation of San Miguel Corp.’s (SMC) food and beverage business as one of the top deals in Southeast Asia last year.

The acquisition of San Miguel Pure Foods Co. Inc.’s shares in Ginebra San Miguel Inc., and San Miguel Brewery Inc. from SMC, which amounted to USD6.5 billion, was the third biggest M&A transaction in the region.

Top M&A transaction in Southeast Asia last year was the acquisition made by the China-led consortium of Global Logistics Properties Ltd. in Singapore worth USD15.9 billion.

This was followed by the USD7-billion deal on Malaysia’s refinery and Petrochemical Integrated Development (RAPID) Project by Saudi Arabian Oil Co.

The Philippines’ SMC deal was on top of the 70-percent share acquisition of Myanmar’s Kyauk Pyu port by Chinese firms and the acquisition of Singapore’s Equis Energy by United States-led companies, with transactions worth USD5 billion each.