Singapore’s position as a regional hub for mergers and acquisitions (M&As) continues to strengthen, with deal values surging in 2024. According to data from the London Stock Exchange Group (LSEG), M&A turnover involving Singapore companies reached USD 51 billion in the first nine months of the year, marking a 29% increase compared to the same period in 2023. This growth was supported by eight major transactions exceeding USD 1 billion, totaling USD 16.2 billion, including a notable acquisition by Australia-listed Lendlease and Warburg Pincus. Despite the increase in deal value, the total number of transactions fell by 25.5% year-on-year.
Inbound M&A activity experienced significant growth, with foreign buyers targeting Singapore companies in deals valued at USD 14.3 billion, a 66.4% increase from the previous year. Domestic M&A activity also rose, reaching USD 4.5 billion, up 15%. However, outbound transactions – where Singapore companies acquire foreign targets – declined to USD14.7 billion, a nine-year low. Factors such as geopolitical tensions, valuation challenges, and regulatory uncertainties contributed to this decline, with 62% of Singapore CEOs reporting that they had paused or cancelled transactions in the past year.
The financial sector emerged as the most active in M&A, accounting for nearly 20% of market share with deals worth US$10 billion, a 36% increase from 2023. Real estate followed, comprising 15% of the market with deals totaling USD 7.7 billion. In contrast, the industrial sector experienced a sharp decline, capturing just US$4.5 billion, down 44% year-on-year. Meanwhile, Singapore’s equity-related activity dipped nearly 31%, raising close to USD 2 billion in the first nine months of 2024.
(Source: LSEG)
