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18 November, 2021

Asian deal activity slows down in October 2021

A drop in the overall deal volume across China and India led to a 4.3% decline in M&A, VC and PE deals across Asia-Pacific in October 2021.

By Sofia Karadima

There has been a decline in deals related to mergers & acquisitions (M&A), private equity (PE), and venture capital (VC) across Asia Pacific in October, according to research by data and analytics company GlobalData.

The 4.3% decline comes as there has been “a nosedive in PE/VC deals and a decline in the overall deal volume across big markets China and India,” according to the press release.

Deal activity in the Asia-Pacific region has been consistently improving since June. However, October reversed the trend with surge in new Covid-19 cases across key markets such as China impacting the deal-making sentiments,” GlobalData’s lead analyst, Aurojyoti Bose, said in the press release.

Indeed, the GlobalData financial deals database reveals that deal activity in October was down compared with the monthly average of the third quarter of 2021, but up from the monthly average in the first half of the year.

More specifically, there was a total of 1,278 deals announced in Asia-Pacific during October 2021, down from 1,336 the month before.

The decline in deal volumes in China and India played a key role in this drop. The data shows that China experienced a 5.8% month-on-month decline in deal volume, while India endured a 11.6% drop over the same period. Other countries that witnessed month-on-month declinse in deal volume include Singapore, Indonesia, and Australia.

However, other countries experienced a strong growth in deal volume on a month-on-month basis, with New Zealand, Japan, Malaysia and South Korea experiencing 23.8%, 23.1%, 16.7% and 4% month-on-month growth, respectively, in October 2021.

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Private equity experienced the greatest drop in activity over the same period, amounting to 33.8%, followed by venture financing deals (6.7%). However, M&A deals recorded a 3.9% growth in October 2021 compared with the previous month.

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