China Focusing on M&A
Does your company plan to participate in any mergers or acquisition activities in 2012? If so, will your company be making the acquisition or is it going to be acquired?
In 2012, 34% of CFOs expect to be involved in M&A activities, particularly those based in China (49%) and in Singapore (42%). The least likely to do M&A are companies in South Korea (69%), Australia (52%) and Hong Kong (50%).
What are the primary reasons for M&A activities?
The overriding reason for M&A activity is to ensure growth (74%), which is the reason given by all CFOs in Hong Kong planning to embark on this activity.
Less common reasons include:
- Industry consolidation (39%).
- Acquiring technology (26%).
- Enhancing production capabilities (25%).
Government directives, sometimes cited as a driver of M&A in China, do not figure prominently among the reasons, even in China – only 3% of CFOs based there say they are doing M&A because the government wants them to.