Upsurging M&A deals in the new normal

November 05, 2020 | 15:56
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The M&A market is expected to upsurge in the time coming to reach $5 or even $7 billion, after the pandemic is brought under control. 
upsurging ma deals in the new normal
Vietnam M&A Forum will be held Upsurging M&A deals in the new normal

At today's press conference (November 5), Le Trong Minh, VIR's editor-in-chief said that M&A activities have been growing tremendously, both in quantity and scale since the first forum in 2009, to become an effective channel to mobilise capital, renew the country's growth model, restructure the economy, and equitise state-owned enterprises.

He also highlighted M&A deals role in improving corporate governance and the competitiveness of businesses.

"After more than one decade of strong growth with thousands of deals, and almost $50 billion of total deal value, the M&A market is turning a new page with a lot of opportunities. However, the COVID-19 pandemic has had a negative effect on the entire global economy, pulling down the M&A market," Minh said.

CMAC, analysing data collected by MergerMarket, showed that total global M&A deals in the first six months were $901.7 billion, decreasing by 52 per cent on-year, and 6,943 deals, down 32 per cent on-year.

Particularly in Vietnam, total M&A deals in 2019 reached $2.7 billion, equalling 94.7 per cent of the previous year. Due to COVID-19, the M&A value is projected to decrease to $3.4 billion, equivalent to 48.6 per cent of last year.

In the second half of the year, the market will be able to see some remarkable deals like acquisitions and restructuring private corporations. Foreign investors, especially from Singapore, Thailand, South Korea, and Japan are still showing a great deal of interest in Vietnam's M&A market.

During the pandemic, Vietnam is emerging as a safe and attractive destination, as the only country in Southeast Asia with positive growth. In the long-term, the M&A market is expected to boom on both the supply and demand sides. CMAC forecasted the market to rebound following a V-shaped trajectory in 2021-2022, hitting $4.5-5 billion in 2021 and $7 billion in 2022.

That is why "Upsurging in the new normal" is the theme of this year's M&A Forum. "This is Vietnam's one and only forum that has been held each of the past 11 years, contributing to the growth of the M&A market, promoting transparency, and benefiting all sides," added Minh.

Vietnam M&A Forum 2020 will be attended by about 500 representatives of businesses as well as domestic and international investment funds.

The 12th M&A Forum this year themed "Upsurging in the new normal" will be held at GEM Palace on Tuesday, November 24, 2020. The forum is organised by VIR and AVM Vietnam under the patronage of the Ministry of Planning and Investment.

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