What is the Value of Mergers and Acquisitions in Emerging Markets?

The value of mergers and acquisitions (M&A) in the Asian developing market from January 1 to April 6, 2017, reached US$232.7 billion, equivalent to Rp3.09 quadrillion. This figure represents a 13.5 percent increase compared to the same period the previous year. The number of deals reached 2,040.

Indian companies were the primary target of M&A in Asia during the January 1-April 6, 2017 period, with a value of US$102.1 billion, or approximately Rp1.36 quadrillion, surging 86.9 percent compared to the same period in 2016. China followed with M&A activity valued at US$98.3 billion, or around Rp1.3 quadrillion. However, planned acquisitions in China during the same period decreased by 14 percent compared to the previous year. Meanwhile, planned M&A in Indonesia only reached US$2.1 billion, or Rp27.9 trillion, a 2.1 percent increase from the previous year.

High economic growth and large populations are attractive factors for investors to channel their funds into these two countries. India and China are the pillars of economic growth in Asia.