AsiaPacific MA down 34 in 1Q from year prior
Deals backed by private equity drops 33
Advisors see signs of slow but nascent recovery

HONG KONG, March 31 Reuters Mergers and acquisitions MA in the AsiaPacific region fell to a decade low in the first three months of this year as a tumultuous geopolitical and macroeconomic environment left dealmakers cautious.

The value of deals involving Asian companies totalled 176 billion in the first quarter of 2023, 34 less than in the same period of 2022 and the lowest since 2013, Refinitiv data showed.

There are signs of a slow recovery, deal advisors told Reuters, citing an increase in their conversations with private equity firms and corporations over strategic plans for assets.

However, conditions are still far from favourable, they said, considering the impact of interest rate hikes worldwide, RussoUkrainian war and SinoU.S. tension.

The collapse of Silicon Valley Bank SIVBV.UL and rescue of Credit Suisse Group AG added to the negative sentiment even without directly impacting Asian dealmaking, advisors said.

With these uncertainties, we have clients who are putting their deals on hold or moving at a slower pace. We also encourage clients to continue with the process at a slower pace, and yet be poised and ready to get a deal done when there is sufficient clarity, said Singaporebased Keoy Soo Earn, financial advisory regional managing partner at Deloitte Southeast Asia.

Australia was the region39;s only major market to…