China Leads Increased Interest in Q2 in Industrial Manufacturing M&A Activity
Deal activity picked up slightly in the second quarter of 2013, recording 36 transactions worth more than $50 million for a total deal value of $12.6 billion, compared to 30 deals worth $9.7 billion in the previous quarter this year. While advanced nation acquirers accounted for 69 percent of total deals worth more than $50 million, emerging and developing nations also witnessed a substantial increase in deal activity, representing 31 percent of total deals, more than double from the first quarter of 2013. Of the emerging and developing nations, Asia and Oceania represented the most active region totaling 18 transactions worth more than $50 million in the second quarter of 2013, with China recording 12 deals.
“Given the continued uncertainty, acquirers have shifted their focus from cross border to local deals, which can involve less risk due to greater potential for synergies,” said Bobby Bono, U.S. industrial manufacturing leader for PwC. “China seems likely to drive more of the overall industrial manufacturing deal activity as the country’s importance to the global economy grows. In fact, 2013 is shaping up to have the highest number of China-involved deals of any annual period over the past 10 years.”