ASIAN companies have been snapping up choice overseas assets, mainly in Europe, with mergers and acquisitions hitting a record $58bn (£39bn) so far this year despite the financial crisis.
The data collected by deal-tracking firm Dealogic showed that acquisitions of European firms by Asian investors jumped 87 per cent, compared with full-year 2007, to $43.9bn (£29bn). The data do not include Japan.
China was the biggest buyer in Europe, with its companies spending $25.9bn (£17bn), mainly on big resource-related acquisitions. India ranks second, with $10.4bn (£6bn) in such deals.
However, deals by Asian companies in the US fell 50 per cent compared with 2007 to $14.1bn (£9.6bn), Dealogic said. The average size of such deals fell 59 per cent to $122m (£83m) each, compared with an average of $298m (£204m) for acquisitions in 2007, it said.
The most active investors in the US were South Korean firms, which spent $5.1bn (£3.5bn) in 32 deals, the report said.
Slumping share prices have made many overseas companies relatively inexpensive, offering a rare opportunity for firms in Asia including cash-rich, state-run Chinese companies to go bargain-hunting.
The biggest acquisition in 2008 was Aluminum Corp. of China’s purchase of a 12 per cent stake in mining giant Rio Tinto PLC’s London-listed unit for about $14bn (£9.6bn).
Other big deals included offshore oil-services provider China Oilfield Services’ acquisition of Norway’s Awilco Offshore, in a deal valued at $2.5bn (£1.7bn), and the $2.9 billion purchase of a 1.6 per cent stake in France’s Total by Beijing’s State Administration of Foreign Exchange, Dealogic said.
