S'pore firms set bumper $44.7b in Q3 M&A deals
The appetite for mergers and acquisitions (M&As) has been ravenous among local companies this year, with the value of deals the highest for the year-to-date since 2014.
Singapore Companies racked up M&As worth US$33.1 billion (S$44.7 billion) in the third quarter, up 81.4 per cent on the second, despite a 33.9 per cent drop in number of announced deals.
The bumper quarter reflects what has been a busy year so far, with M&A activity hitting US$62.5 billion since Jan 1, up 31.7 per cent over the same period last year, according to Thomson Reuters yesterday.
The average M&A deal size for disclosed deals was US$143 million since Jan 1 to Sept 14, compared with US$106.9 million for the first nine months last year.
There were also more Singapore companies participating in deals above US$1 billion, including the US$16.4 billion buyout of Global Logistic Properties (GLP).
The Thomson Reuters report said there have been 15 M&As valued in excess of US$1 billion so far this year, with a combined value of US$35.9 billion. This compares with 10 in the same period last year, when the total value was US$21.9 billion.
The industrial sector has led the way this year, accounting for 35.6 per cent of M&A activity worth US$22.3 billion, up 152.8 per cent from the same period last year.
"This is the highest period for the sector in terms of value, surpassing the record annual high in 2015 of US$13.3 billion," the report said.
This was boosted by China's Nesta Investment Holdings acquiring the entire share capital of GLP, a provider of warehousing and storage services, for US$16.4 billion, including net debt.
FOR MORE, READ THE STRAITS TIMES TODAY
Get The New Paper on your phone with the free TNP app. Download from the Apple App Store or Google Play Store now