Asian share of global mergers on the rise

Asian share of global mergers on the rise

Asia's share of the global mergers and acquisitions (M&A) market has been on the rise despite the economic slump, a survey showed on Saturday.

For the first eight months of this year, Asia's share rose to 9 percent or US$56 billion, up from 3 percent from the corresponding period three years ago, said the report by consultants Arthur Andersen.

Defense against foreign competition was cited as the overall motivation accounting for the bulk of activity in the region.

"Singapore and Asian companies in general feel they are behind the game compared with America and Europe," said Mark Powell, head of the firm's M&A services in the city-state. "They feel more vulnerable to acquisition by foreign investors," he said.

About 30 percent of Singapore companies expressed concern they will be targets for acquisition, compared with the Asian average of 16 percent ranging from 7 percent in Japan to 40 percent in Australia.

Despite the increase in M&A activity, the survey found 36 percent of respondents in Asia believed organic growth was a better way.

Singapore and Australia are the most interested in seeking corporate partnerships to extend their reach out of their domestic markets, the findings revealed.

About 60 percent of Australian companies queried were on the lookout for a global partner and 50 percent in Singapore. The Asian average was 41 percent. -- dpa