March 28, 2005
A total of 288 mergers and acquisitions have been finalized in the three years since the promulgation of Taiwan's Merger and Acquisition Act in February 2002, according to statistics released by the
MOEA Department of Commerce in early March. These M&A deals reached a total value of
NTD 151.89 billion.
It is interesting that, of these 288 M&A projects, 218 took place in 2004. Their value was
NTD 72.53 billion. There were 50 deals with a combined valued of
NTD 66.45 billion in 2002 and 20 deals totaling
NTD 12.91 billion in 2003.
These figures show that 54% of these mergers and acquisitions involved small and medium enterprises, those with a capitalization of
NTD 500 million or less. Businesses with a capitalization of
NTD 2 billion or more also accounted for a significant 23% of these cases.
Looking at industry sectors, 22.9% of these M&A deals were in the electronics sector, while the financial, construction and steel industries accounted for 8%, 11.8% and 4.5% of these deals respectively.
There were fifteen M&A cases, totaling
NTD 7 billion, involving foreign enterprises. Two of these were simple mergers, three involved the establishment of a new division, four involved the absorption of a division, two were performed through stock swaps and four were the products of stock conversions.
The
MOEA, hoping to encourage foreign enterprises to pursue mergers and acquisitions with Taiwanese enterprises, is considering the relaxation of regulations regarding mergers and acquisitions with Chinese-invested overseas companies and the reporting of M&A deals.
(United Daily News)
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