APAC telecom M&A deals reaches surges to $7b in H1 2024
Telcom companies are turning to mergers and acquisitions to mitigate industry threats.
Asia Pacific telecom M&A deals grew to $7b in H1 2024, compared to $600m from the same time last year, according to a Bain & Company report.
Bain said that on a global scale, deal value surged from about $16b in the first half of last year to $43b in the first half of 2024
Global oM&A value rose by 162% year-on-year (YoY), led by Europe and the Americas.
A trend Bain also noticed is that many telecom companies are turning to M&A to mitigate unprecedented industry transformation and emerging competitive threats.
Scale deals accounted for the largest share of global deal value in H1 2024, a notable shift from the past two years.
Mobile and fixed network companies pursued scale deals to expand networks whilst financial investors acquired fixed assets. This suggests confidence in digital infrastructure’s business fundamentals despite recent headwinds.
Infrastructure divestments accounted for a large portion of telecom M&A activity from 2019 through 2022 (38%), but high interest rates reversed the trend, according to the report.