Corporate/M&A in Asia 2024

The Asia-Pacific region saw an overall decline in deal volume and values in 2023. However, there has been activity in key sectors and jurisdictions.

TMT, as a whole, has been a considerably active sector in the region. TikTok and GoTo Gojek Tokopedia’s USD1.5 billion strategic partnership is probably one of the more significant transactions, but there have also been telecom mergers like FarEasTone and Asia Pacific Telecom. Deals related to data infrastructure across China and Southeast Asia have risen, often involving private equity firms and other private investors. Notable examples include Bain Capital's acquisition of Chindata and KKR's investment in Singtel's regional data centre business. As countries continue to invest in and enhance their data infrastructure, several transactions have taken place in the telecom tower market across Southeast Asia, such as Globe Telecom and Smart's sale and leaseback of thousands of towers in the Philippines.

Healthcare has been another key industry. Thomson Medical Group’s acquisition of FV Hospital is one of the largest hospital transactions in Vietnam. Columbia Asia Healthcare’s USD1.2 billion acquisition of Ramsay Sime Darby Health Care in Malaysia was high profile. In China, AstraZeneca's approximately USD1.2 billion acquisition of Gracell Biotechnologies was one of the largest pharmaceutical transactions in the region.

Although the automotive industry has been less active in comparison, it has still seen significant transactions. One of the largest mergers and acquisitions deals in 2023 was the USD 23 billion business combination between VinFast Auto and Blacks Spade Acquisition. Additionally, BYD acquired Jabil's mobile electronics business for approximately USD 2.2 billion, and there was a business combination between Lotus Technology and L Catterton Asia Acquisition Corp valued at around USD 5.4 billion.

India's M&A market experienced a slowdown, which commentators attributed to quiet public markets, high interest rates and elections. Despite this, India has benefited from a buoyant domestic market with large deals like Disney and Reliance's approximately USD8.5 billion joint venture and Data Infrastructure Trust’s approximately USD2 billion acquisition of ATC Telecom Infrastructure. The country has also seen a number of key deals in its energy, technology and financial services sectors.

Japan and Singapore are recognized for having significant deal flow in the region. Singapore is regarded as a key player in facilitating deals across Southeast Asia. A market commentator stated, "Southeast Asia is one of the vastest and most developed regions, the growth is coming out of Asia. We are finding large funds and large multinationals making big investments here." In addition to transactions like VinFast Auto and Black Spade Acquisition, other noteworthy deals include China Rubber Investment Group's acquisition of Halcyon Agri, Shell's acquisition of Pavilion Energy, and Far East Drug's acquisition of Fullerton Health.

In Japan, many commentators have noted the regulatory changes that allow unsolicited takeover bids, creating a more dynamic market and increasing deal volume. Other contributing factors include low interest rates and a vibrant private equity sector, which has included some high-value transactions, such as Japan Industrial Partners' approximately USD13.5 billion take-private of Toshiba. Other examples include Bain Capital's USD2.5 billion management buyout of Outsourcing, and JIC Capital's USD4.5 billion acquisition of Shinko Electric Industries.

Despite the challenges presented by global economic trends, M&A activity in the Asia-Pacific region has demonstrated resilience. Japan and Southeast Asia, especially Singapore, have experienced the highest deal flow and increased activity in the region. Furthermore, there has been growth and investment in key sectors, including healthcare, energy and renewables, data infrastructure, and the automotive industries.