PE deals down in Asia, up globally

Asia's PE-backed M&A declined 34% year-on-year during the first nine months of 2013, while global deals increased 16%.

Private equity-backed M&A in Asia Pacific (excluding Japan) declined 34 percent year-on-year during the first nine months of 2013 to $16.3 billion from $24.8 billion in 2012, according to figures from data provider Thomson Reuters. 

The number was the lowest for the nine month period since 2010, when just $14.1 billion was invested. 

However, some Asian countries outperformed. About 36 percent of the Asia Pacific deal value came from South Korea, up 3.8 percent from last year, largely attributed to MBK Partners acquisition of ING Life Insurance Korea, which was valued at $1.65 billion, according to Thomson Reuters.

Globally, total China outbound M&A activity stood at $43.7 billion, a 3 percent increase from the same period last year and the highest nine month period since 2008, when it reached $67.8 billion

Thomson Reuters data

Asia's top deal of the year across all M&A was Shuanghui International Holdings $7 billion acquisition of US pork producer Smithfield Foods – the largest-ever Chinese acquisition of a US company, which was backed by CDH Investments.

Although Asia's deal value declined, global private equity-backed M&A increased 16 percent during the first nine months of this year, compared to the same period in 2012 – largely due to a significant uptick in dealflow in the US. 

The US accounted for 59 percent of worldwide private equity dealflow, with investment in the country increasing 28 percent during the first nine months of 2013 to $140 billion compared to the $110 billion invested during the whole of 2012. 

Europe saw an increase of 29 percent in private equity dealflow during the first nine months of the year, totalling $66.4 billion, according to the data. 

Overall China outbound M&A into the US reached a record value of $11.2 billion, up 94 percent from the first nine months of 2012.

Globally, total China outbound M&A activity stood at $43.7 billion, a 3 percent increase from the same period last year and the highest nine month period since 2008, when it reached $67.8 billion.