Emerging markets feel sting of the Eurozone as M&A deals fall

Marion Dakers
DEALMAKERS in emerging markets are now feeling the impact of the worldwide slump in mergers and acquisitions, according to research out yesterday.

The overall number of cross-border deals fell 15.8 per cent to 979 in the first half of 2012 compared to last year, figures from KPMG claim.

It found that even fast-growing economies such as China are seeing deal activity dampened this year, suggesting the economic worries that have cast a pall over M&A in Western markets are being felt worldwide.

Deal volume between high growth emerging markets is down 30.72 per cent year-on-year.

Buyers in emerging markets have also pared back purchases in mature economies to the lowest level since 2006, the research said.

Meanwhile, the number of firms in developed markets looking to high-growth regions fell to its lowest in seven years, with 661 transactions in total.

UK companies remain subdued, with just 51 deals in high-growth economies compared to 66 a year ago.

KPMG global head of M&A David Simpson said this is not a sign that the country has gone cold on emerging markets. “Rather, the low number of deals involving UK firms is simply symptomatic of the depressed market generally.”