Intralinks: Asia Pacific to lead global M&A growth in 1H 2018

The number of announced M&A deals in Asia Pacific in 1H 2018 is predicted to increase by around 14% year-over-year, with a range between 7% and 21%, said financial technology provider Intralinks.

Over the next six months, the strongest growth in deal announcements in the region is predicted to come from the energy & Power, industrials and materials sectors in North Asia (China, Hong Kong and South Korea), India, Southeast Asia and Australia, according to data from the firm’s Deal Flow Predictor, an indicator of future M&A announcements.

All regions in Asia Pacific, except Japan, saw double-digit increases in their volumes of early-stage M&A activity in Q4 2017, Intralink pointed out, adding that strengthening global economic demand and supportive fiscal and monetary policy actions are driving vigorous economic growth and increasing deal-making confidence in most parts of Asia Pacific.

In addition, the number of announced M&A deals in 1H 2018 is expected to increase by up to 10% year-over-year compared to 1H 2017 while the strongest growth in worldwide deal announcements is predicted to come from the consumer & retail, industrials and healthcare sectors over the next six months.

“Despite recent volatility in financial markets, the deal-making environment continues to be supported by a strong pickup in global economic growth, low inflation, low interest rates and a plentiful supply of corporate and private equity bidders”, said Philip Whitchelo, Intralinks’ Vice President for Strategic Business Development. “The recent correction in equity markets may also result in valuations of M&A targets becoming more attractive.”