Asian financial services merger and acquisition activity will grow into 2012
Financial services M&A across has picked up pace again in the first half of 2011 after the decline in 2010, but potential dealers must overcome regulatory and human capital issues to reap the full benefits. October 20, 2011 | Wong Wei HanThe global economic power structure has seen substantial reshuffling in recent years. With developed economies in the US and Europe floundering under looming financial troubles, Asian economies are drawing global attention with their strong performances despite market headwinds. The financial services market across the region is similarly reflecting these glowing prospects, and with new dynamics triggered by gradual deregulation and increased competition, Merger and Acquisition (M&A) activities will feature prominently as financial institutions explore their growth and revenue propositions in Asia. PwC’s sixth “Financial Services M&A in Asia” report, which is based on a survey of 375 senior executives in financial services across 13 Asian territories, has found that Asian financial sectors have regained their appetite for M&A activities in the first two quarters of 2011 after a relatively lackluster 2010, with a roughly 40% y-o-y increase in deal values to approximately $27.5 billion in H1 2011. This growth is spurred primarily by domestic M&A transactions as institutions try to expand their customer base and product range in fast-growing Asian markets, with further impetus provided by stronger competition and pressure of operational and capital efficiency. At the same time, cross-border transactions are also accelerating on the back of growing demand from institutions in mature and developed economies. Notably, Singapore and Hong Kong are named the most attractive M&A destinations after China, highlighting their potential as jumping-off points to access regional markets. Despite the positive momentum, financial institutions eyeing Asian M&A deals must overcome several challenges. The leading obstacle will be the Basel III regime, which will have an impact on the size and shape of transactions as financial institutions grapple with tighter capital restriction. Othe... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, Industry Outlook, Mergers and Acquisitions, Risk and RegulationCapital & Strategic Issues,Industry Outlook,Mergers and Acquisitions,Risk and Regulation, Capital & Strategic Issues,Industry Outlook,Mergers and Acquisitions,Risk and Regulation, Keywords:PwC, Lone Star, RHB Capital PwC, Lone Star, RHB Capital
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