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