Merger and acquisition (M&A) activity in Vietnam declined in 2016 in value and volume compared to 2015, with 39 deals worth $2.6 billion, according to the Volatility and Opportunity: Energy M&A in Asia-Pacific report released by Eversheds in collaboration with Mergermarket.
In the first quarter, however, M&A volumes and values both increased year-on-year, with 13 deals worth $616 million, compared to six deals worth $85 million in the same quarter last year.
Notable deals included Thailand’s SCG Cement - Building Materials Company Limited buying the Vietnam Construction Materials JSC for $440 million and Japan’s Earth Chemical Co., Ltd buying the A My Gia JSC for $81 million.
According to the report, energy M&As in Asia-Pacific may not have seen a record year in 2016 but it was still one for the record books.
While falling 33 per cent year-on-year in value, overall announced deals maintained pace with 2015’s 196, closing the year with 198 transactions valued at $77.6 billion.
Increasing oil prices and government support for renewables bolstered the M&A deal flow in Asia-Pacific’s energy market last year.
The leading sub-sector in M&A activity in Asia-Pacific was renewable energy transactions, involving wind, solar, hydro, and geothermal power, which accounted for more than half of Asia-Pacific’s energy M&A transactions in 2016 (52 per cent), up from a 44 per cent in 2015.
China maintained its position as the leading market for Asia-Pacific energy M&As in 2016, accounting for 36 per cent of deals and 31 per cent of value. India had the second-largest totals, accounting for 18 per cent of deals and 22 per cent of value, followed by Australia with 11 per cent of deals and 20 per cent of value.
-VN Economic Times-