Articles
Jul 28, 2025
Asia-Pacific M&A activity could get a boost once trade tensions resolve
28 Jul, 2025 Asia-Pacific M&A activity could get a boost once trade tensions resolve By John Wu and Beenish Bashir M&A activity in Asia-Pacific continued to seesaw as dealmakers likely waited for clarity to emerge on global trade negotiations. The aggregate value of M&A deals in the region declined 21.3% year over year to $28.87 billion in June. However, the number of deals increased 13.2% to 834, according to S&P Global Market Intelligence data. The decline came after a 57.4% jump in May, the data shows. On a month-over-month basis, the aggregate deal value fell 32.1% in June, while the number of deals was up 12.2%. Adapting, not retreating As much as 28% of the Asia-based respondents to a global survey conducted by global law firm Norton Rose Fulbright, in collaboration with Mergermarket, said their appetite for M&A has increased due to the trade uncertainty. "Asian dealmakers are adapting rather than retreating from deals," Norton Rose Fulbright said in a note on the key findings of the survey. "This was the highest positive response of any international region, indicating that many Asian companies viewed the disruption as a chance, for example, to pursue non-US targets." US President Donald Trump rattled world markets in April with a series of announcements on steep "reciprocal tariffs" on imports from most trading partners of the US. The Trump administration has been negotiating with key trading partners and has agreed on significantly lower tariffs following tariff deals with a host of Asia-Pacific countries, including Japan, Vietnam and Indonesia. According to the Norton Rose Fulbright report, local private equity firms are eager to deploy funds in midmarket deals in Southeast Asia, while larger international funds are shopping for bigger targets in East Asia. "Many respondents see [private equity] buyers (domestic and international) as key acquirers across Asia." These include private equity deals and growth investments, such as buyouts of family businesses in Southeast Asia, carve-outs in Japan or growth equity in Indian technology startups, the report said. Tariff deals On July 23, the US reached a deal with Japan, on top of the 15% tariffs on Japanese goods exported to the country, investing $550 billion in the US as a vehicle to enhance access for American exports. By the following weekend, the US and the EU agreed on a tariff on all EU goods at 15%, half the 30% import tax rate Trump had threatened to implement. "While downside risks remain to global growth overall, we anticipate many countries will eventually arrive at deals, or at least frameworks of sorts," according to a July 24 note by asset management firm Eastspring Investment. "And while a deceleration of growth momentum is expected in [the second half of 2025], extreme left-tail growth risk scenarios are less likely, in our view, amid signs of easing of trade tensions." Valued at $2.55 billion, the acquisition of Australian building products company Brickworks Ltd. by Washington H. Soul Pattinson & Co. Ltd., an investment company based in Australia, was the biggest M&A deal in Asia-Pacific in June, Market Intelligence data shows. That was followed by the $2.50 billion sale of Aveo Group Ltd., an Australian senior living operator, by Brookfield Asset Management Ltd. to a private investor, and the $1.39 billion acquisition of a minority stake in J. B. Chemicals & Pharmaceuticals Ltd. by Torrent Pharmaceuticals Ltd. in India. Among the top 10 largest deals in June, three involved targets in Australia; two each in India and Japan; and one each in mainland China, Taiwan and South Korea. By sector, three of the top 10 M&A transactions of the month belonged to industrials, while two deals each were struck in materials and healthcare.
