China, Asia-Pac M&A slowdown
China deals in first half of 2017 dropped 23.8% in value YOY
Merger and acquisition activity (M&A) in Asia-Pacific, outside of Japan, has pulled back in the first half of 2017 on the back of the slowdown of deal flow in China. The Asset financial magazine, citing data from researcher Mergermarket, reports that overall deal value fell 7 percent to US$272.9 billion compared with US$293.5 billion in the same period a year earlier.
China, which made up 49.1 percent of all Asian deals, suffered a 23.8 percent drop in deal value with US$134 billion across 675 deals, down from US$175.9 billion across 774 deals in the first half of 2016, during which it contributed a nearly 60 percent share of the region’s M&A activity.
The slowdown was mainly attributed to tighter capital controls imposed by Chinese regulators that chilled outbound M&A transactions, with a significant impact on large ticket transactions.