Asia Pacific suffers slow quarter
The Materials sector made up the largest portion of acquisitions involving Asia-Pacific companies in the first quarter of 2012, according to Thomson Reuters.
It captured 24.9 per cent of all mergers and acquisitions (M&A). Metals & Mining increased 16.5 per cent from the first quarter of 2011 with 236 deals worth US$20.7 billion, which brings the value of announced M&A deals in the Materials industry to $23 billion.
Meanwhile, the deal-making activity in the Energy & Power sector declined by 52.6 per cent driven by the considerable drop in the volume and value of acquisitions in the Oil & Gas sector. M&A activity in the Oil & Gas sector is at its lowest level since third quarter of 2009 as it dropped considerably by 71 per cent in value to US$7.8 billion from the first quarter of 2011. By deal count, the sector announced 52 deals in the first quarter of 2012, the slowest quarter since the second quarter of 2003 when also 56 deals were announced.
Thomson Reuters data showed that all M&A deals involving Asia-Pacific companies, excluding Japan, totalled $92.4 billion so far this year, dropping 38.4 per cent after a strong start in 2011 when the value hit $150.0 billion.
The number of announced deal also dropped by 35.8 per cent, to 1,851. By deal count, this is the lowest quarter since the second quarter of 2003. At least 1,079 deals were completed so far this year worth $72.4 billion, down 37.3 per cent in value and 39 per cent in the deal count from the same period last year.
