Asian merger deals skyrocket

Asian merger deals skyrocket

BANGKOK (AP): Mergers and acquisitions skyrocketed last year in the five countries struck hardest by the Asian economic crisis - Indonesia, Thailand, Malaysia, South Korea and the Philippines.

The UN Conference on Trade and Development, which is holding its 10th ministerial meeting of 188 member countries Feb. 12-20 in Bangkok, reported on Thursday that US$12 billion in mergers and acquisitions were conducted last year, a huge increase over the $1 billion annually before the crisis.

Cross-border mergers and acquisitions were the driving force of foreign direct investment in the region, fueled by companies looking to pick up bargains in the wreckage of the recession, the organization said a statement.

Foreign direct investment last year in Asia, excluding Japan, totaled $91 billion, a 1 percent increase over 1998.

Investment flows into Malaysia were steady and grew sharply for South Korea. But investment into Indonesia, Thailand and the Philippines all declined.