Asian push towards in-house M&As forces big banks to adapt

Hong Kong

ASIAN acquirers are taking their own advice when it comes to mergers and acquisitions - and global investment banks may have to adapt. From Singapore's Temasek to China's Citic, Asian companies are increasingly relying on internal talent to get deals done. The loss of business in an already tough market means big investment banks will have to work harder to prove their worth.

International banks have had a minimal role in two recent mega-deals. Temasek used its own mergers-and-acquisitions team to buy a 24.95 per cent stake in AS Watson, the retail business of Li Ka-Shing's Hutchison Whampoa, in March. Hong Kong-listed Citic Pacific has named only its own subsidiary, and a related outfit, as advisers on its 226.9 billion yuan (S$45.6 billion) acquisition of assets from its parent. Morgan Stanley worked on the deal, say people familiar with the situation, but isn't mentioned in public documents.