Indian firm makes 3rd biggest deal in June as M&A activity slows down in Asia Pacific

New Delhi, July 29 Mergers and Acquisition (M&A) activity in Asia Pacific region fluctuated throughout the year, declining in June as dealmakers awaited clarity to emerge on global trade negotiations, a report said on Tuesday.

Meanwhile, the $1.39 billion acquisition of a minority stake in JB Chemicals & Pharmaceuticals by Torrent Pharmaceuticals in India was June's third-largest Asia Pacific deal, according to S&P Global Market Intelligence data. Two of India's deals made it to the list of the top 10 largest deals in June.

The aggregate value of M&A deals in the Asia Pacific region declined 21.3 per cent YoY to $28.87 billion in June.

However, the number of deals increased 13.2 per cent to 834. The decline came after a 57.4 per cent jump in May. On a month-over-month basis, the aggregate deal value fell 32.1 per cent in June, while the number of deals was up 12.2 per cent.

The report said that 28 per cent of Asian respondents were more interested in M&A due to trade concerns.

"Asian dealmakers are adapting rather than retreating from deals...This was the highest positive response of any international region, indicating that many Asian companies viewed the disruption as a chance, for example, to pursue non-US targets," the report mentioned.

According to the report, local private equity firms are eager to deploy funds in midmarket deals in Southeast Asia, while larger international funds are shopping for bigger targets in East Asia. "Many respondents see private equity buyers as key acquirers across Asia."

These include private equity deals and growth investments, such as buyouts of family businesses in Southeast Asia, carve-outs in Japan or growth equity in Indian technology startups, the report said.

US President Donald Trump's April announcements of "reciprocal tariffs" in April shook global markets. On July 23, the US and Japan reached a deal that includes 15 per cent tariffs on Japanese imports into US. The deal mandated $550 billion worth of Japanese investments in the US.

Analysts expect the global growth to slow in the second half of 2025, the report said. They believed high left-tail growth risk scenarios were less plausible due to reducing trade tensions.

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