Trade buyers in the emerging economies have their M&A deal-making sights firmly set back on the developed economies after recording a 25% increase in cross-border deal activity in the past six months.
According to KPMG’s latest Emerging Markets International Acquisition Tracker (EMIAT), 243 Emerging-to-Developed (E2D) deals were recorded in the first half of 2010, compared to 194 in the latter half of 2009.
In addition, the latest EMIAT – which has been expanded to cover all countries worldwide and to monitor deals between the emerging economies themselves – now reveals that there has been an average of 202 Emerging-to-Emerging (E2E) cross-border deals per year since the start of 2003. This represents 1518 deals struck in 7.5 years – and virtually all away from the eyes of the Western media - as emerging economy trade buyers continue to grow in stature.
The 25% increase in E2D deals was in no small part down to a resurgent India. After three relatively quiet six month periods, India recorded 50 deals – well up on the 21 of the previous six months. China was also up nine deals to 39 while South East Asia jumped from 34 to 47.
On the E2E front, analysis of the numbers going back to 2003 reveals that South East Asia has been the most popular destination, registering 302 inbound deals. China was the next most popular market with 197 deals, ahead of the CIS with 176 and India with 167. Perhaps the only surprise here is that Brazil has only registered 56 deals into the rest of South America – out of the latter’s total of 121 deals since 2003.