Taiwan M&A activity hits 15-year low as US-China trade war rocks business climate
- M&A deals so far this year have dropped 42 per cent
- Transaction value of US$2.5 billion was lowest since 2004
Merger and acquisition activity in Taiwan has hit a 15-year low as the US-China trade war and global recession fears have spooked investors who fear the business climate is deteriorating.
According to data by Dealogic, the number of M&A deals so far this year dropped 42 per cent from the same period in 2018 to 71 while the transaction value of US$2.5 billion was the lowest since 2004.
Ongoing trade tension between the world’s two largest economies and a global economic slowdown have worsened investment sentiment, the data provider said.
It predicted that the full-year M&A activities on the island would slump to a 10-year low.
For the whole year of 2018, total M&A transactions in Taiwan were valued at US$9.3 billion, up 30 per cent from a year earlier, according to data from Refinitiv.