 Mid-Year 2006
Setting the Pace for an Outstanding Year
As we embark on the second half of 2006, the pace of M&A across the region shows no signs of slowing. Thanks to a variety of big-ticket deals, there was a significant uplift in total deal values with the six months to June, posting a 32% increase in announced deal values compared to the previous six months. Notable amongst the Asia Pacific countries was India, which witnessed deal values in the first half of 2006 exceeding full year 2005 figures. Similarly, several other countries posted stand-out amounts in deal values, including Malaysia, Taiwan and Thailand.
The long-term uptrend in deal volumes across Asia remains on track, witnessed by a 12% increase in volumes compared to the first half of 2005, wherein again India posted exceptional growth. Still, this rising tide is raising all boats, as evidenced by the constant mix of contributors towards the regional totals.
As expected, private equity funds are making their presence felt in the major markets across the region. A large number of deals were announced in India, Japan and Australasia, and the expectation is for this trend to grow. As a result, look for this increased competition for deals to generate increased transaction multiples in the medium term.
Our first special feature in this issue focuses on China. Pharmaceuticals giants across the world are trying to gauge the real opportunity available in this dynamic market, with an analysis of factors such as the changing demographic profile, rapid sector consolidation and the quest to find a national pharmaceutical champion. The feature then considers these in light of a consumer base constantly achieving greater discretionary spending power.
Following the broader analysis of the Asian retail sector in our previous Bulletin, our second special feature focuses on retail opportunities in India, which continues to be one of the most exciting investment destinations in the region. We discuss the prospects, the players, the government's FDI relaxation plans and of course the challenges in this in-depth look at a market where the best is yet to come.
Finally, we are pleased to note that with this issue we are initiating coverage on Vietnam, which will continue as a regular addition to this Bulletin. Our initial look into the Vietnamese economy will leave no doubt that there are a number of reasons for optimism for potential investors.
PricewaterhouseCoopers M&A Professionals
The Asia-Pacific region is characterised by a diversity of cultures, business practices and regulatory environments. Executing successful transactions in this market requires a combination of in-depth local knowledge and an integrated regional network. PricewaterhouseCoopers has experienced professionals in all major territories in the region within our Transaction Services, Tax Services (China M&A Tax and Hong Kong M&A Tax) and Corporate Finance practices to provide a wide range of integrated, uniform and high quality services to any potential investor in the Asia-Pacific region.
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Read more by downloading our Asia-Pacific M&A Bulletin (Mid-Year 2006) (pdf, 2.3MB) for your reference. Alternatively, you may launch and view the pdf excerpts for each section or jurisdiction below:
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Special Features
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