US acquisitions of companies in emerging markets have fallen to their lowest level since 2003, consultancy KPMG International said on Monday.For the first half of 2008, US purchases of emerging market companies totalled 59, compared with a peak of 99 in 2006 and comparable to levels last seen in 2003, KPMG International’s latest Emerging Markets International Acquisition Tracker shows.
Overall, there were 161 acquisitions by developed-market firms of emerging ones in the first half, compared with 90 emerging-to-developed deals, the survey showed.
Emerging-to-developed deals represent 56 percent of the developed-to-emerging total, a rise from 21 percent four years ago, KPMG International said in a statement.
The data suggests that acquisitions by Indian firms will soon outnumber inbound deals, KPMG said.
Since the start of 2003, there have been 322 completed deals involving Indian buyers acquiring developed-market companies, and 340 deals in which Indian companies have been bought.
“With outbound deals now having outnumbered inbound deals for each of the last three six-month periods, India seems well set to become a net deal exporter in the next [survey] in 2009,” KPMG said.
India’s outbound deals represent 95 percent of the inbound total, KPMG said, compared with 30 percent for Russia, 12 percent for China and 9 percent for Brazil.
The US was the most active developed market economy in acquisitions in India, Brazil and China, while the UK was the most active in Russia.
The survey analysed deal flows between 11 developed economies – UK, US, Canada, Spain, France, Germany, Holland, Italy, South Africa, Australia and Japan – and 10 emerging economies – India, China, Russia, Brazil, South Korea, Vietnam, Macau, Hong Kong, Qatar and the United Arab Emirates. (Reuters)
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