India second M&A hotspot in APAC banking space, says study
06 Sep 2007
Mumbai: India has emerged the second most targeted nation for mergers and acquisitions of banking companies in the Asia-Pacific region with deals worth $10.3 billion so far in 2007.
Total value of M&As - domestic and cross border - in the banking space in Asia-Pacific jumped to $70.5 billion in 220 deals during the first eight months, up 40 per cent from $50.5 billion through 197 deals a year ago, according to data compiled by global consultancy firm Dealogic.
With 72 deals valued at $36.3 billion, Japan leads the tally, followed by India and South Korea. South Korea recorded 10 M&A deals valued at $7.6 billion, the study showed.
Cross-border M&As touched $23.8 billion in 69 deals in 2007 so far, nearly doubling from $12 billion through 45 deals during the same period last year.
Top five deals this year accounted for 46 per cent of the total volume, compared to just 15 per cent last year. The top five deals were led by the acquisition of 59.74 per cent stake in State Bank of India by the Indian government for $8.7 billion from the Reserve Bank of India.
Japan accounted for three of the top five M&As - acquisition of 56 per cent stake in Nikko cordial by Citigroup for $7.9 billion, buyout of Mizuho Securities by Shinko Securities for $6.5 billion and Mitsubishi UFJ Financial Group acquiring 37.22 per cent in Mitsubishi UFJ Securities.
South
Korea accounted for the fourth largest deal with UK-based HSBC holdings acquiring
51.02 per cent of Korea Exchange Bank for $6.3 billion.