Geopolitical tensions, sustainability goals to continue to drive Asia-Pac M&A in 2023

THE pursuit of sustainability and diversification is driving corporate merger and acquisitions (M&A) in the Asia-Pacific region, said investment bankers. They expect this trend to continue in 2023, although the tough economic environment may hamper dealmaking.

Regional M&A activity is already on the downtrend, after a record-breaking 2021. In the first nine months of 2022, Refinitiv data showed, the value of deals involving companies in Asia-Pacific excluding Japan declined 34 per cent to US$748.5 billion.

The fall was at least partly due to differences in the expectations of buyers and sellers.