Public CompanyGlobal property sector M&A touched $152 bn: Dealogic
The global merger and acquisition (M&A) activity in the property sector so far this year amounted to $151.8 billion (around Rs 7 lakh crore), the lowest level in the last six years amid the economic downturn.
- India Inc partners PE funds for acquisitions - Kotak bets big on M&A deals, ties up with Russian bank - International M&A deals to fall 56% in "09: OECD - Bharti Airtel won"t be a pest; not to call MTN again - India Inc settles for smaller M&A deals - Horror of Lehman"s fall haunts global M&A space
"Global property sector M&A reached just $151.8 billion via 2,282 deals in 2009, down 34 per cent on 2008 volume, making it the lowest level since 2003," deal tracking firm Dealogic said.
In the year 2003, the total deal activity in the property segment across the world amounted to $118 billion (Rs 5,48,700 crore) by way of 1,557 transactions.
China was the most targeted nation and it also witnessed a significant increase of 41 per cent in its M&A levels from its previous year.
"China attracted deals amounting to $29.3 billion or 19 per cent of the global volume - the highest total on record," Dealogic said.
The Asia Pacific region accounted for 44 per cent of global volume, while Americas and the EMEA (Europe, the Middle East and Africa) volume cornered 11 per cent and 45 per cent of the global total.
Dealogic further said that Asia Pacific deal volume fell just 1.6 per cent while, Americas and EMEA volume fell by a massive 59 per cent and 44 per cent, respectively.
The year 2009, saw a host of small deals (deals amounting between $100 million and $500 million), but there were no major big ticket transactions this year, as for the first time since 2005, there were no transaction which were worth over $10 billion.
"Deals in the $100 million to $500 million range accounted for 41 per cent of volume in 2009, up 4 percentage points on 2008, while deals between $1 billion and $10 billion made up 25 per cent of the total," Dealogic added.
A nation-wise analysis of global property sector M&A shows that China was the most targeted nation (19 per cent) followed by the United Kingdom (17 per cent), Japan (13 per cent), the United States (8 per cent), France (7 per cent), Australia (4 per cent), Austria and Switzerland (3 per cent), Spain and Germany (2 per cent) each, Dealogic said.