The finance merger and acquisition (M&A) activity in the Asia-Pacific region has bucked the global trend and has registered a 20 per cent rise in volume terms from the year ago period notching up deals worth nearly $62 billion so far this year, a media report say.
"Global Finance M&A volume is down 23 per cent so far in 2008. However, Asia pacific (ex Japan) finance M&A activity increased 20 per cent to $61.9 billion in 2008," according to data compiled by deal tracking firm Dealogic.
In the year 2007, the Asia Pacific (ex Japan) M&A activity stood at $51.4 billion.
Finance is the most active industry within the Asia Pacific (ex Japan) region. This space represented 16 per cent of the global financial volume so far this year, up from a 12 per cent market share in the year ago period.
"Australia was the most targeted nation in the Asia Pacific (ex Japan) finance industry, with $22.5 billion in 2008 year-till-date (YTD), up almost four fold from $6 billion in 2007 YTD, led by Westpacs $18.5 billion acquisition of St George Bank announced in May this year," Dealogic added.
The target nationality of the top five finance M&A transactions in the Asia Pacific (ex Japan) include Australia, Hong Kong, Indonesia, India and China.
HDFC Bank's acquisition of Centurion Bank of Punjab for $2.2 billion is the most significant finance M&A of India.
After the HDFC Bank and CBoP merger the combined entity would have a network of 1,167 branches, a strong deposit base of around Rs 1,22,000 crore and net advances of around Rs 89,000 crore.
Other most significant acquisitions include Australia's Westpac Banking's acquisition of St George Bank for $18.5 billion. China Merchants Bank's $4.7 billion acquisition of Hong Kong-based Wing Lung Bank.
Malayan Banking Bhd -- Maybank's buyout of PT Bank Internasional Indonesia -- BII for $2.7 billion and Bank of America's acquisition of 2.8 per cent stake in China Construction Bank Corp (CCB) for $1.9 billion.
UBS topped the Asia Pacific (ex Japan) finance industry advisor rankings so far this year with $33.6 billion, followed by Credit Suisse with $29.9 billion and Morgan Stanley with $23.6 billion.
