China, Japan drive 18% growth in Asia-Pacific deal count

Increased activity in China and Japan drove deal count up 17.7% year over year in the Asia-Pacific region in October, S&P Global Market Intelligence data shows.

Companies struck 777 deals in the region in the month compared with 660 a year ago, the data shows. Firms in China and Japan contributed 211 and 157 deals, respectively, to the October tally. Deals also jumped in India, to 102 from 79, while deal activity in Australia stayed flat year over year.

There was also a surge in the aggregate transaction value in October, the Market Intelligence data shows. Value climbed to $38.12 billion from $23.66 billion a year ago, driven by Guotai Junan Securities Co. Ltd.'s proposed purchase of Haitong Securities Co. Ltd. for about $16.78 billion. Other major deals included HMC Capital Ltd.'s acquisition of Global Switch Australia Holdings Pty. Ltd. for $1.41 billion and Resimac Group Ltd.'s purchase of a portfolio of auto finance loan and lease receivables from Westpac Banking Corp. for $1.10 billion.

Guotai Junan and Haitong Securities signed a definitive agreement in October for their previously announced merger plan.

The growth in Asia-Pacific deals in October was broadly in line with global trends, indicating a possible recovery in M&A activities amid an improvement in financial conditions. Optimism for further M&A activity in 2025 has grown after deal volumes increased in the third quarter and as interest rates globally look likely to fall following two cuts by the US Federal Reserve, with more likely to follow, according to Market Intelligence's "M&A Equity Offerings Market Report." Global M&A announcements increased 7.3% year over year to 10,582 deals in the third quarter, driven by 17.3% growth in Asia-Pacific.

M&A hotspots

The industrials and technology, media and telecommunications (TMT) sectors continue to benefit from increased investor interest, driving the aggregate deal count and offsetting declines seen in the financials, healthcare and real estate sectors.

Deal count in the region's industrials sector surged 36.7% year over year to 149 in October, while companies struck 127 deals in the TMT sector versus 110 in the same month a year ago, Market Intelligence data shows. The sectors jointly accounted for 35.4% of the total deal count in October, compared with 33.2% in October 2023.

M&A activity in the energy and utilities sector remained flat year over year, while activity for the financials, healthcare and real estate sectors declined.