Among Southeast Asia's top deals in H1 is the $1.2 billion investment into Indonesia's ride-hailing service Go-Jek by a group led by China's Tencent Holdings in May. (JG Photo/Syarifah Ryaclaudia)

SE Asia Records M&A Slowdown in H1: Report


JULY 28, 2017

Jakarta. The value of mergers and acquisitions in Southeast Asia shrank by 15 percent in the first half of the year due to the lack of business deals between countries in the region, a study from global merger and acquisition intelligence service Mergermarket showed on Friday (28/07).

According to the report titled "Southeast Asia Trend Report," between January and June, there were 180 deals amounting to $24.4 billion. In the same period last year 213 deals worth $28.8 billion were recorded.

The value of intra-regional merger and acquisition activities dropped by 67 percent to $6 billion, with only 97 deals in the period, compared with $18.4 billion in 116 deals in the first semester last year.

On the bright side, the value of deals involving bidders from outside the region jumped by 78 percent to $18.4 billion in 83 transactions from last year's $10.4 billion in 97 transactions. That was the highest on the record, since Mergermarket started collecting the data in 2001.

Among the region's top deals is the $1.2 billion investment into Indonesia's ride-hailing service Go-Jek by a group led by China's Tencent Holdings in May.

China is the second largest investor in Southeast Asia, with 23 deals worth $3.2 billion. Saudi Arabia tops the list with a single $7 billion deal by its state oil giant Saudi Aramco, which acquired 50 percent in Malaysia's Refinery and Petrochemical Integrated Development (RAPID) project.

Meanwhile, outbound deals also gave a positive sign with 64 deals valued at $5.9 billion, up 14.56 percent compared with the same period last year.

In outbound deals, Singapore prevailed with 47 deals worth $5.7 billion.

The energy, mining and utility sector contributed the highest of the total deal value, with $9.64 billion in 20 deals, accounting for 39.5 percent of the deals in the region.

The technology sector was second, with $3.11 billion, followed by the transportation sector with $2.3 billion, the real estate sector with $2.08 billion and business services with $1.26 billion. The remainder consisted of the industrial, chemical and financial services sectors.

The Mergermarket report is based on research by analysts and journalists in 67 locations across the United States, Europe, Asia Pacific, Middle East and Africa. The report includes all merger or acquisition transactions of over $5 million, and undisclosed deals, if turnover of the target's acquisition is more than $10 million.