MOEA: mergers and acquisitions take off due to Merger and Acquisition Act

March 29, 2006

Since Taiwan's institution of the Merger and Acquisition Act in February 2002, the cumulative number merger and acquisition cases here has reached 533, with a combined value of NTD 215.9 billion, according to the MOEA. Mergers and acquisitions between small and medium enterprises with capitalizations of no more than NTD 500 million have accounted for 62% of these cases, while those involving companies with capitalizations of NTD 2 billion or more have accounted for 19%.

Deals between companies in the electronics, construction and foods sectors have accounted for most of the mergers and acquisitions since the introduction the Merger and Acquisition Act.

Taiwan, a nation whose economy was built on the backs of countless small and medium enterprises, looks to be especially ripe for a wave of mergers and acquisitions. The MOEA emphasizes that mergers and acquisitions provide many benefits, including facilitating organizational restructuring, speeding expansion into new business sectors, lowering costs, increasing operational efficiency and boosting international competitiveness.

The government has been particularly active in the promotion of mergers and acquisitions in Taiwan's financial sector, which is generally considered to be populated by too many banks.

(Central News Agency)

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