Global M&As: ‘The hunted are fast becoming the hunters’
Published on Thu, Sep 13, 2007 at 09:34 | Source : Moneycontrol.com
Updated at Fri, Sep 14, 2007 at 11:01
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Global M&As: ‘The hunted are fast becoming the hunters’
Companies from BRIC nations (Brazil, Russia, India and China) are fast closing the gap on their counterparts in developed nations in terms of cross-border acquisitions, according to KPMG’s ‘Emerging Markets International Acquisitions Tracker’.
Companies from BRIC nations (Brazil, Russia, India and China) are fast closing the gap on their counterparts in developed nations in terms of cross-border acquisitions, according to KPMG's 'Emerging Markets International Acquisitions Tracker'.
Though the number of deals involving a developed economy buying into an emerging economy is still much larger than that of emerging-into-developed, the divide is narrowing fast.
"Four years ago, the emerging-into-developed deals were outnumbered by four to one," observes Mr Ian Gomes, Chairman of KPMG's New and Emerging Markets practice for KPMG in the UK. "By the end of 2006, that ratio was down to just under three to one, and already in the first half of 2007, that gap has narrowed even further, with the ratio now being less than two to one."
So, when will one overtake the other? Looking at current trends, it's feasible that this crossover could happen within the next two to three years, predicts Mr Gomes.
Though the number of deals involving a developed economy buying into an emerging economy is still much larger than that of emerging-into-developed, the divide is narrowing fast.
