14 Aug 2020
Posted in Business Fundamentals
Deal activity in Asia-Pacific up by 23.2% in July, finds GlobalData
A total of 2,037 deals were announced in the Asia-Pacific (APAC) region during July 2020, which is an increase of 23.2% over the 1,653 deals announced during the previous month, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that the deal volume during the month remained above the first quarter (Q1) of 2020 and Q2 monthly average levels.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal activity in the region remained inconsistent since COVID-19 outbreak. However, the recent months have seen an uptick, which could be a positive sign. July marks the second consecutive month of growth in deal activity.”
Deal activity also improved in most of the key markets such as China, Australia and South Korea, which witnessed increase in deal volume by 32.3%, 18.4% and 40.0%, respectively, compared to the previous month. However, Japan and Singapore witnessed decline in deal activity by 3% and 6.5%, respectively
Mr Bose explains: “China, Australia and South Korea were able to control the spread of COVID-19 effectively and regain confidence for deal making thereby witnessing an improvement in deal activity. Meanwhile the resurgence of new cases in Japan raised concerns while increasing infection rate among migrant workers in Singapore in recent months is resulting in subdued deal activity.”
Most of the deal types witnessed increase in volume during July compared to the previous month. Private equity, venture financing and M&A deals volume increased by 5.9%, 25.1% and 26.8%, respectively, while the number of debt offerings, equity offerings and licensing agreement deals increased by 27.4%, 23.1% and 57.1%, respectively, and partnership deals declined by 19.7%.