The number of deals announced in the Asia-Pacific region increased by 5.4% during the week ended 19 April 2020 compared to the previous week, according to GlobalData, a leading data and analytics company.
However, an analysis of GlobalData’s Financial Deals Database reveals that the deal volume remained below the Q1 2020 and March 2020 weekly average levels.
Deal activity has remained inconsistent since the coronavirus/Covid-19 outbreak and this growth in the announcement of deals amidst the volatile market conditions is a sign of revival of optimism.
Deal activity increased in key markets such as China and Japan, which witnessed increase in deal volume by 37% and 3.2%, respectively, during the reporting period compared to the previous week. However, South Korea and Australia witnessed decline in deal volume by 2.6% and 38.3%, respectively.
Deal volume in healthcare (including pharmaceuticals and medical equipment) remained at the same level whereas travel & tourism sector witnessed improvement in deal activity compared to the previous week. However, retail sector witnessed decline in deal volume.
The number of private equity and venture financing deals volume increased by 14.3% and 37%, respectively, during the week compared to the previous week while the volume of mergers and acquisitions (M&A) and partnership deals declined by 12.5% and 22.2%, respectively.