Financial services mergers and acquisitions plummet
Mergers and acquisitions (M&A) in the financial services sector declined by 63.7 per cent from 2011 to 2012.
In a year that industry analyst mergermarket said would "undoubtedly be remembered as one of the worst years for Australian M&A", M&A in the financial services sector fell to their lowest levels since 2005.
A total of 24 deals were closed valued at $757 million and representing the second consecutive decrease by deal value in the sector.
Acquisitions in the rest of Asia remained unchanged at $64.1 billion, while Australia's contribution to M&A deals in the financial services sector in Asia fell to 1.2 per cent.
Other sectors fared slightly better, with the rest of the economy experiencing a 40.8 per cent decrease in deal value from $75 billion to $44 billion this year.
The Macquarie Group managed to trump its larger international peers to maintain its top ranking among financial advisers in volume and value for M&A, according to mergermarket.
It closed 31 deals worth $14.5 billion, including the negotiation of an 85 per cent stake in Charter Hall's Office REIT for the Government of Singapore Investment Corporation and Canada Pension Plan Investment Board.
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When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
