The Asia Pacific M&A Newsletter
brought to you by
Natixis, Vermilion Partners and Azure Capital
Issue One - Q1 2020
We are delighted to welcome you to the first edition of “M&A Pulse in APAC”, our newly launched newsletter focused on M&A in Asia Pacific. The premise for the newsletter is to share with you, news, insights and conversations that are pertinent to the M&A landscape in Asia Pacific, geographic insights and nuances, as well as a curated snapshot of the top news we felt shaped the industry during the quarter.
Natixis’ M&A story in Asia Pacific is for us, very inspiring, and we are incredibly proud of the progress that we have made to reach the point we are at today
Raghu Narain, Head of IB, Asia Pacific, Marcus Shadbolt, Managing Partner, Vermilion, and Simon Price, Joint Managing Partner, Azure Capital, discuss the M&A market in Asia Pacific, the trends they are seeing and the direction they see the industry moving against the current backdrop of volatility.
Miranda Zhao, Head of M&A for Natixis in APAC, speaks about the impact of Covid-19 on the M&A landscape in Asia Pacific.
Global M&A activity in 2019 was USD 3.33tn, down 6.9% year-on-year, however this was against an exceptional year in 2018. The fourth quarter brought a rebound in global M&A deals, spurred on by a phase-one trade deal between the US and China, signed in mid-January 2020.
Alicia Garcia Herrero, Chief Economist, Asia Pacific, Natixis
China M&A Monitor
The Chinese economy experienced a challenging 2019 due to strenuous negotiations with the US. This, together with the continuous clampdown on the shadow banking, led to negative sentiment. As if this were not enough, since early 2020, China has taken another unprecedented hit from the coronavirus outbreak. Because of the economic vulnerability and strengthened overseas screenings on China-oriented biddings, large-scale overseas mergers and acquisitions in 2019 have clearly slowed down. However this is only true for the value of transactions but not for the number. This signals that smaller-sized transactions are becoming increasingly popular among Chinese investors in the overseas acquisition market.
Why some stock markets can defy gravity longer than others
Fiscal stimulus is helpful, but risks remain potentially higher on infections
Only the Coronavirus can convince Trump of the virtues of international cooperation
*For the full text of these reports, please refer to the email distribution or contact Natixis Asia Pacific Communications
Marc Vincent, Global Head of CIB at Natixis, spoke to efinancial Careers about Natixis' unique boutique approach to M&A.
Business News named Azure Capital the most active adviser in the M&A segment, having worked on 13 announced transactions in WA with a value of $1.3 billion.
Natixis' M&A ranked 5th in France by deal count for 2019 activities, according to Mergermarket and L'Agefi
PJ Solomon CEO, Marc Cooper, speaks with Marc Vincent about the unique partnership of the two firms.
From the record activist campaigns launched by investors last year, 99 were related to M&A.
Not so long ago, Europe found itself in the midst of a feeding frenzy of Asian buyers, but since 2016, Asian M&A in Europe has cooled.
The steep market drop triggered by the global coronavirus outbreak has led many companies to hit the 'pause' button on M&A, sabotaging the hopes of corporate advisers who expected a dealmaking bonanza this year.
The European Commission has encouraged companies to delay submitting antitrust filings, as it points to the complexities and disruptions caused by the coronavirus.
Private equity groups are beefing up warchests and hiring investment professionals to tap an expected buyout boom in China following the coronavirus outbreak and as founders in some traditional businesses execute succession plans.
As governments and companies around the world curtailed travel, some bidders and their advisers have been unable to conduct due diligence in person, affecting the ability of investment banks to provide financing.
Disruption from the spread of the coronavirus will increase pressure for consolidation in the airline industry, the head of Air France-KLM, said.
Electric vehicles have charged up investments around the world, but Australian is reveling in a slew of deals involving old-school petrol stations.
Disclaimer: This document has been prepared by Natixis as commercial documentation for discussion and information purposes only. It is highly confidential and it is the property of Natixis. It should not be disclosed or transmitted to any person other than the original addressee(s) without the prior written consent of Natixis. This document does not constitute a personalised recommendation. It is intended for general distribution and the opinions, analysis, products or services described herein do not take into account any specific investment objective, financial situation or particular need of any recipient.