This edition of the Cross-Border Deals Tracker (formerly HGM Tracker) shows a decline in the volume of developed market investments into emerging markets but a strong growth of emerging markets to emerging markets deals in the second half of 2015.
Deals between investors and acquirers who were both in emerging markets (E2E) were a big feature of overall emerging markets M&A during the latter half of 2015. E2E deals rose significantly (25 percent) during the last 6 months of the year, to 149 deals, a similar volume to that achieved during the same period in 2014 (152). The number of deals involving Chinese acquirers of emerging markets targets increased by 78 percent.
The latest deals data shows that the volume of developed market investments into emerging markets (D2E) hit a 10-year low over the second half of 2015, but emerging market deals with one another showed strong growth over the same period.
Between July and December 2015, the number of D2E deals fell by 3 percent to 541, the lowest number in 10 years. The yearly total is also the lowest in 10 years, at 1101 D2E deals, 9 percent down on 2014. The fall-off is the second period of decline, following a revival in D2E transactions during the second half of 2014. In contrast, the volume of transactions where both the acquiror and the target were in an emerging market (E2E), increased by 25 percent.
The volume of deals involving emerging market acquisitions of developed market targets (E2D) showed more resilience during 2015, increasing by 2 percent from 250 deals to 255 deals during the second half of the year. The yearly total of 505 deals is only one fewer than in 2014, indicating that emerging market investors remain confident in the returns offered by investment into developed markets.
The Cross-Border Deals Tracker (formerly the HGM Tracker) looks at deal flows between 15 developed economies (or groups of economies) and 13 high growth economies (or groups of economies). The Tracker is produced every 6 months to give an up-to-date picture of cross-border merger and acquisition activity, with the current edition featuring deals between January and June 2015.
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