Singapore mergers, acquisitions specialists upbeat on outlook

13:23, December 15, 2010      

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Companies here have gone on a shopping spree for acquisition targets this year, despite the higher price tags. This uptick in mergers and acquisitions (M&A) activities is expected to continue into next year.

"We expect both volumes and values to rise in 2011 and 2012 as returning confidence translates into done deals," Jeff Pirie, head of corporate finance advisory at Deloitte Singapore an international accounting and consulting firm was quoted by the Business Times as saying on Wednesday.

Even as valuations are not looking as cheap as before, Pirie believes that acquirers with a strategic interest in the region can still generate economic returns.

Sectors that are hotting up are the consumer and financial services, technology services and engineering sectors, as well as the oil, gas and mining industry.

Outbound deals continue to be the main driver of M&A activities in Singapore and the region. There were 340 outbound M&As worth 23. 2 billion U.S. dollars inked by Singapore companies this year, five times the value (4.4 billion U.S. dollars) of 256 deals in 2009.

Total M&A activity in South-east Asia has also risen to 2,755 deals this year worth 108.6 billion U.S. dollars compared to 2,744 deals worth 55.1 billion U.S. dollars in 2009, suggesting that deal sizes are generally larger this year.

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