M&A Year in Review 2023 brochure - Flipbook - Page 83
| M&A Outlook | 2024
Asia-Pacific
In Asia-Pacific, as China confronts economic challenges
domestically, and tension deepens between East and West, we
expect more transactional opportunities to emerge within
Japan through its low interest rate environment, weakening
value of the yen, and the government’s ambition to become
carbon neutral by 2050, as well as more transactional
opportunities in Australia, through its growing national
security cooperation with the United States. As a consequence
of the likely decoupling between East and West, Chinese stateowned enterprises will continue to acquire energy and natural
resources assets around the world to secure supply chains and
to safeguard against impacts from geopolitical tensions, while
an emerging private sector within China will engage in
transactions supporting electric vehicles, batteries, and energy
storage. Western investors, particularly those located within
the United States, may continue the trend of divesting assets
in China.
Political processes will not be the only macro trend to influence
M&A markets, as armed conflicts in Europe and the Middle East
continue to have a considerable impact on the global economy
and on regional dealmaking. A pause in hostilities or permanent
resolution to ongoing conflicts will give rise to renewed interest
in deploying capital to these regions, including in Israel’s
thriving technology and life sciences and health care sectors,
and Saudi Arabia’s rapidly expanding post-oil economy.
With geopolitical uncertainty reaching its highest levels in
decades, dealmakers will recognize that undertaking complex
M&A transactions in the current environment will require
astute structuring, accommodation for longer timelines, and
multi-faceted scenario planning.
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