A new survey revealed that mergers and acquisitions activity for developed and emerging markets declined in 2012.
According to KPMG, an audit, tax and business advisory services firm, the number of completed deals decreased by 11.8 percent as compared to 2011, resulting in the fewest number of completed deals since the 2009 financial crisis.
The deal flow which dropped from 2,260 to 1,994, according to its most recent Emerging Markets International Acquisition Tracker (EMIAT) study, was attributed to uncertain economic conditions which caused companies to hold off making acquisitions even if they had the funds.
Three categories of M&A activity were tracked by KPMG: developed market acquirer's of emerging- and high-growth market assets and vice versa; and acquisitions of one emerging- and high-growth market company by a peer in another emerging- and high-growth market.
Results showed that the deal volume between high-growth emerging markets fell by 24 percent last year to 225 completed transactions, as compared to 297 in 2011. The number of transactions where developed market buyers acquired emerging-market assets also fell 12.6 percent in 2012, the survey showed
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