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Inbound M&A down in 2015

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By Reporter
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3 minute read

Foreign acquisitions of Australian companies are down by 28.5 per cent in the first half of 2015 compared with the same period last year, according to the latest data released by Thomson Reuters.

Overseas firms invested US$18.1 billion into Australian companies in the the first half of 2015, down from US$25.3 billion in the first half of 2014, according to Thomson Reuters.

"The bulk of M&A deal flow targeted Australia’s industrials sector with US$6.3 billion, witnessing a six-fold increase in deal value and the highest semi-annual period on record.

"Industrials captured 34.6 per cent of Australia’s inbound M&A activity followed by financials with 31.1 per cent market share," said Thomson Reuters.

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The biggest cross-border inbound M&A deal this year remains the US$6 billion acquisition of Toll Holdings Ltd by Japan Post Co Ltd in February.

The pending US$4.6 billion acquisition of GE Capital Finance Australasia by an investor group including KKR & Co. and Deutsche Bank AG is the second-largest cross-border deal.

When it comes to outbound deals, Industry Funds Management's acquisition of the Indiana Toll Road Concession Company in March is the biggest M&A deal of 2015.

Macquarie Bank, AustralianSuper and Slater & Gordon also feature in the top five outbound Australian deals.

Macquarie Group has also been the biggest beneficiary of Australian M&A fees, capturing 20 per cent of the market.

UBS and Goldman Sachs rank second and third, respectively, when it comes to M&A fees in 2015, said Thomson Reuters.