Big-ticket M&As may skip the second half

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: of deal activity.

Asia recorded 73 transactions with a disclosed value of $2.2 billion and the US recorded 82 transactions with a disclosed deal value of $2 billion. If regional disclosed value trends persist for the rest of 2008, the US share of global disclosed deal value would be at its lowest level in the past seven years.

A strong level of outbound deal flow from Asia suggests that automotive companies in developing markets are poised to accelerate expansion into the global marketplace. “Looking at the attractive value of some of the assets of global OEMs/ auto component suppliers, the Indian automotive companies will look for acquiring assets in the overseas market, both in Europe and North America to increase their global footprint,” he added.

The devaluation of dollar has not attracted increased foreign investment till date. This is likely the result of weakness in the US economy and its automotive market. This may prod would-be acquirers to reconsider or delay US M&A investments until they have more clarity about the magnitude of downside risk, it says.