02 October, 2007

India has emerged as the second most targeted nation for mergers and acquisitions-2007

India has emerged as the second most targeted nation for mergers and acquisitions in the Asia-Pacific banking industry with deals worth US$10.3 billion in 2007 so far, a report shows.

According to the data compiled by global consultancy firm Dealogic, the total value of M&As - domestic and cross border - in the Asia-Pacific banking space jumped to US$70.5 billion in 220 deals during the first eight months, up 40 per cent from US$50.5 billion through 197 deals a year ago.

With 72 deals valued at US$36.3 billion, Japan leads the tally, followed by India and South Korea.

South Korea recorded 10 M&A deals valued at US$7.6 billion, the Dealogic data showed.
Meanwhile, cross-border M&As touched US$23.8 billion in 69 deals in 2007 so far.

The figures nearly doubled from US$12 billion through 45 deals during the same period last year.

Interestingly, the top five deals this year accounted for 46 per cent of the total volume, compared to just 15 per cent last year.

The top five deals were led by the acquisition of 59.74 per cent stake in State Bank of India by the Indian government for US$8.7 billion from the country's central bank - the Reserve Bank of India.

Japan accounted for three of the top five M&As - the acquisition of a 56 per cent stake in Nikko Cordial by Citigroup for US$7.9 billion, buyout of Mizuho Securities by Shinko Securities for US$6.5 billion and Mitsubishi UFJ Financial Group acquiring 37.22 per cent in Mitsubishi UFJ Securities.

South Korea accounted for the fourth largest deal with UK-based HSBC Holdings acquiring 51.02 per cent of Korea Exchange Bank for US$6.3 billion.